Electricity transmission exemption applied to installation services, setting aside the service tax demand and leaving property rental demand intact.

Notification No. 45/2010-ST exempted taxable services relating to transmission and distribution of electricity for the relevant period, and activities undertaken for power distribution and transmission companies were held to fall within that exemption. On that basis, the demand under Erection, Commissioning or Installation Services was found unsustainable and set aside in favour of the assessee. The demand relating to renting of immovable property was not disturbed.

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Issues: Whether the demand raised under Erection, Commissioning or Installation Services was unsustainable in view of Notification No. 45/2010-ST covering services relating to transmission and distribution of electricity.

Analysis: The applicable notification granted exemption to taxable services relating to transmission and distribution of electricity during the relevant period. The activity undertaken for power distribution and transmission companies was held to fall within the benefit of that notification. The cited decisions were followed, and the demand under the said category was found unsustainable. The demand relating to renting of immovable property was not interfered with.

Conclusion: The demand under Erection, Commissioning or Installation Services was set aside in favour of the assessee.

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