Exemption for electricity transmission services bars service tax on erection of transmission towers for the covered period.

Service tax on erection of transmission towers used for transmission and distribution of electricity was held to fall within Notification No. 45/2010-ST dated 20.07.2010, which exempted services rendered up to 21.06.2010 in relation to electricity transmission and distribution. For the period 2005-06 to 2007-08, the notification was treated as covering the services in question, so no service tax liability arose for that disputed period. The impugned order was therefore upheld in favour of the assessee.

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Issues: Whether service tax was payable on erection of transmission towers for the relevant period in view of Notification No. 45/2010-ST dated 20.07.2010.

Analysis: The services rendered related to erection of transmission towers used for transmission and distribution of electricity. The relevant period was 2005-06 to 2007-08. Notification No. 45/2010-ST dated 20.07.2010 exempted service tax for services rendered up to 21.06.2010 in relation to transmission and distribution of electricity, and the matter stood covered by that notification.

Conclusion: Service tax was not payable for the disputed period, and the impugned order was upheld in favour of the assessee.

Ratio Decidendi: Services rendered in relation to transmission and distribution of electricity were covered by the exemption notification, and no service tax liability arose for the period covered by that notification.

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