Electrical installation and wiring work fell outside taxable erection or commissioning for the relevant period; service tax demand set aside.

Electrical contracting work involving laying pipes for wire crossings, fixing junction boxes and boxes, and digging pits for cables and earthing was treated as electrical work, not civil work falling within erection, commissioning or installation of plant, machinery or equipment. The later statutory inclusion of installation of electrical devices, wiring and fittings from 16.06.2005 confirmed that such activities were outside the taxable entry for the relevant period. Service tax was therefore not payable, and the demand was set aside.

---

---

Issues: Whether the appellants' electrical contracting activities amounted to erection, commissioning or installation of plant, machinery or equipment so as to attract service tax under the relevant definition.

Analysis: The activity consisted of laying pipes in walls and floors for crossing of wires, fixing junction boxes, MS boxes and wooden boxes, and digging earth pits for laying cables and earthing. These were held to be electrical works and not civil works of the kind covered by the service tax entry. The later inclusion, with effect from 16.06.2005, of installation of electrical devices including wiring or fittings also showed that such activities were not covered during the relevant period.

Conclusion: The activity did not amount to erection, commissioning or installation of plant, machinery or equipment for the relevant period, and service tax was not payable.

Final Conclusion: The demand of service tax was set aside and the appeal was allowed.

Ratio Decidendi: Electrical installation and wiring activities are not taxable as erection, commissioning or installation of plant, machinery or equipment for a period when the statutory definition did not expressly include such work.

---