Optical fiber cable laying found non-taxable under service tax provisions, setting precedent for uniform treatment.

The appellant, engaged in laying optical fibre cables, contested liability for service tax. The Tribunal held that laying optical fibre cables is not taxable under "Erection, Commissioning and Installation Service," following precedents equating it to laying electrical cables. The CBEC circular's applicability to optical fibre cables was disputed, leading to the conclusion that no service tax applies to laying optical fibre cables. The appeal was allowed, setting aside the tax demands and penalties, establishing uniform treatment for taxing various cable laying activities under service tax provisions.

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Issues:
1. Whether the appellant is liable to pay service tax for laying and jointing optical fibre cables.
2. Applicability of CBEC circular on laying of cables under or alongside roads to optical fibre cables.
3. Interpretation of the activity of laying optical fibre cables in relation to service tax liability.

Analysis:
Issue 1: The appellant, engaged in laying optical fibre cables for a telecom company, was issued a show cause notice for non-payment of service tax. The Commissioner confirmed the demands, including interest and penalties. The appellant contested that the laying of cables did not fall under the category of "Erection, Commissioning and Installation Service."

Issue 2: The appellant argued that a CBEC circular clarified that laying cables under or alongside roads is not a taxable service. The Department contended that the circular applied to electrical cables, not optical fibre cables. The appellant cited precedents where it was held that laying optical fibre cables is akin to laying electrical cables, and thus, not taxable.

Issue 3: The Tribunal examined the arguments and records. It noted that the CBEC circular's applicability to optical fibre cables was challenged. Relying on precedents, the Tribunal held that there is no distinction between laying electrical and optical fibre cables. It concluded that no service tax could be charged on the activity of laying optical fibre cables, following the precedent set by the Tribunal in a similar case. The impugned order was set aside, and the appeal was allowed.

This judgment clarifies the tax liability concerning laying optical fibre cables, emphasizing the uniform treatment of laying different types of cables under the service tax provisions.

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