Erection, commissioning or installation service does not cover basic cable and wiring work without plant or machinery installation.

Activities limited to laying pipes and cables in walls, roofs and floors, fixing junction boxes and cable trays, and digging earth for laying cables and earthing equipment did not fall within erection, commissioning or installation service because they did not involve erection or installation of plant, machinery or equipment. The revenue failed to produce material showing that any plant, machinery or equipment had been erected, commissioned or installed, and the circular relied on in the judgment also indicated that putting up electric wires and fittings in residential premises was outside the taxable service. Service tax was therefore not leviable on the work described.

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Issues: Whether activities such as laying pipes in walls, roofs and floors for crossing of wires, fixing junction boxes and cable trays, and digging earth for laying cables and earthing of equipment fall within the taxable category of erection, commissioning or installation service.

Analysis: The taxable entry covered services provided in relation to erection, commissioning or installation of plant, machinery or equipment. The work shown on record was limited to laying pipes and cables, fixing boxes and related electrical fittings. The revenue did not produce cogent material to establish that the assessee had erected, commissioned or installed any plant, machinery or equipment. The circular referred to in the judgment also indicated that putting up electric wires and fittings in residential premises was not covered by the taxable service.

Conclusion: The activities in question did not amount to erection, commissioning or installation of plant, machinery or equipment, and service tax was not leviable. The issue was decided in favour of the assessee.

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