Cable-laying and trenching are not Erection, Commissioning and Installation Services, so the service tax demand failed.

Trenching and laying of telephone cables under or alongside roads does not constitute Erection, Commissioning and Installation Services where the applicable Board circular excludes such activity from tax and precedent treats cable-laying and allied earthwork as outside that category. The Tribunal therefore held the service not taxable under that head, and the service tax demand could not be sustained.

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Issues: Whether trenching and laying of telephone cables under or alongside roads is liable to service tax under Erection, Commissioning and Installation Services.

Analysis: The activity was examined in the light of the Board's circular clarifying that laying cables under or alongside roads is not a taxable service under the relevant category. The Tribunal also noted that judicial precedent had consistently held that trenching, laying cables, and allied earthwork for cable installation do not amount to installation or commissioning so as to attract service tax under Erection, Commissioning and Installation Services.

Conclusion: The activity was held not taxable under Erection, Commissioning and Installation Services, and the service tax demand could not be sustained.

Ratio Decidendi: Trenching and laying of telephone cables under or alongside roads does not constitute taxable Erection, Commissioning and Installation Services when the governing circular and binding precedent exclude such activity from service tax.

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