2011 (10) TMI 317

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....B.S.V. Murthy; Service tax of Rs. 1,81,060/- has been demanded from the appellant on the ground that the service, laying of optical fibers for various companies by the appellant, is covered by erection, commissioning and installation services, which was brought into service tax net from 01.7.2003. Besides demanding interest, penalties under various sections of Finance Act, 1994 have also been imp....

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....rcular, Circular No. 123/5/2010-ST dated 24.5.2010. This circular clarifies that laying the cables under or alongside the road is not taxable service. Para 2 (ii), the circular reads as under:- 2. Scope of certain taxable services in brief; (i) ........ (ii) Under 'Erection, commissioning or installation services', (iii) the activities relevant to the instant issue are (a) the erection, commis....

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....in the show cause notice as well as in the impugned order. Fact remains that liability prior to 16.6.2005 was contested and therefore, Commissioner should have considered the issue and the Circular.  If the service tax is not liable to be paid, the question of imposition of penalty and collection of interest etc. does not arise. Moreover, clarification issued by the Board came subsequent to t....