Electricity transmission-related services fall within exemption notifications, making service tax demand under installation services unsustainable.

Services rendered in relation to transmission or distribution of electricity were treated as covered by the exemption notifications, because the scope extended beyond the entities actually engaged in transmission or distribution to services provided in relation to that activity. On that basis, the service tax demand raised under Erection, Commissioning or Installation Services was held unsustainable. Supporting coordinate bench decisions were relied on, and the demand and penalty were set aside in favour of the assessee.

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Issues: Whether services rendered in relation to transmission or distribution of electricity were covered by the exemption notifications issued under the relevant fiscal provisions, so as to render the service tax demand under Erection, Commissioning or Installation Services unsustainable.

Analysis: The activities undertaken were found to be directly relatable to transmission or distribution of electricity. The scope of the notifications was held to extend beyond entities themselves engaged in transmission or distribution and to cover services provided in relation to such activity. In view of the notifications and supporting coordinate bench decisions, the demand could not be sustained.

Conclusion: The issue was decided in favour of the assessee, and the service tax demand and penalty were set aside.

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