2024 (6) TMI 583

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.... Transmission lines on D/C tower with ACSR "Moose Conductor" on Turnkey basis. They had classified the said services under the category "Erection, Commissioning & Installation Service" and the service receiver i.e M/s GETCO is denying payment of Service tax on the premise that service is exempted in view of the Board Circular No. 123/5/2010-TRU dtd. 24.05.2010. Accordingly respondent filed the refund claim. Revenue observed that in invoices each of the job carried out by the respondent and its value has been shown separately and since all the job carried out are of independent nature and are not covered under the definition of "Laying of cables under or alongside road and Laying of electric cables between grids/sub-stations/ transformer stations en-route" as per the Board's circular dtd. 24.05.2010, refund therefore appeared to be not tenable. Respondent was issued show cause notice that why the refund claim should not be rejected. The said show cause notice was adjudicated vide order-in-original dtd. 02.07.2012 and the adjudicating authority has rejected the refund claim. On such an order passed by Adjudicating Authority, in rejecting the refundclaim, the respondent herein preferr....

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....s circular dtd. 24.05.2010 and accordingly liable to pay service tax. The Ld. Commissioner has committed gross error of law by holding that the Service provided to M/s GETCO by respondent comes under the purview of Boards circular dtd. 24.05.2010. Therefore, in view of above facts and reasons, the impugned order passed by the Ld. Commissioner (Appeals) is not proper and legal and deserves to be set aside. 3. On the other hand, Shri HardikModh, Ld. Advocate appearing on behalf of the respondent supported the finding of the impugned order. He submits that the revenue ought to have appreciated the agreement dtd. 23.10.2009 wherein M/s GETCO awarded separate contract for erection of transmission line on turnkey basis between Mundra-Zerda line No. 2-330.563 KM. The contract specified that the contract was awarded on turnkey basis on firm price. Since the schedule appended to the Erection Works contract delineated into contract for the erection of the transmission line into various activities with separate rates does not necessarily imply that there are separate contracts for different activities. The revenue ought to have appreciated that the body of the contract read with Part B of ....

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....e & Customs, New Delhi Subject : Applicability of Service tax on laying of cables under or alongside roads and similar activities - Clarification regarding. Disputes have arisen in some parts of the country regarding applicability of service tax on certain activities such as shifting of overhead cables to underground on account of renovation/widening of roads; laying of electrical cables under or alongside roads/railway tracks; between grids/sub-stations/transformers the distribution points of residential or commercial complexes and such activities as electrification of railways, installation of street-lights, traffic lights, flood-lights. This clarification takes into account the taxability of different activities taking into account the scope of all services (such as site formation/excavation/ earth moving service, commercial or industrial construction services; erection, commissioning or installation services; or works-contract service) that are presently taxable as well as those which are covered under the Finance Act, 2010. 2. Scope of certain taxable services in brief; (i) "Commercial or industrial construction services", in brief, cover co....

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....such as widening/renovation of roads Not a taxable service under any clause of sub-section (105) of section 65 of the Finance Act, 1994. 2. Laying of cables under or alongside roads Not a taxable service under any clause of sub-section (105) of section 65 of the Finance Act, 1994 3. Laying of electric cables between grids/sub-stations/ transformer stations en route Not a taxable service under any clause of sub-section (105) of section 65 of the Finance Act, 1994. 4. Installation of transformer/ substations undertaken independently Taxable service, namely Erection, commissioning or installation services [section 65(105)(zzd)]. 5. Laying of electric cables up to distribution point of residential or commercial localities/ complexes Not a taxable service under any clause of sub-section (105) of section 65 of the Finance Act, 1994. 6. Laying of electric cables beyond the distribution point of residential or commercial localities/complexes. Taxable service, namely commercial or industrial construction" or "construction of complex" service [section 65(105)(zzq)/(zzzh)], as the case may be. 7. Installation of street lights, traffic ligh....

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....6, held as under : "5. We notice that out of the total demand confirmed of ` 2,04,14,368/-, bulk of the demand of ` 1,90,47,124/- pertains to Commercial or Industrial Construction service rendered to Maharashtra State Electricity Transmission Co. Ltd., Maharashtra State Electricity Distribution Co. Ltd., Sunil Hi-Tech, Suraj Constructions, V.B. Bhike, etc. for transmission of electricity. Vide Notification 45/2010-S.T., all taxable services rendered "in relation to" transmission and distribution of electricity have been exempted from the purview of Service Tax. The expression "relating to" is very wide in its amplitude and scope as held by the Hon"ble Apex Court in Doypack Systems P. Ltd. - 1988 (36) E.L.T. 201 (S.C.). Therefore, all taxable services rendered in relation to transmission/distribution of electricity would be eligible for the benefit of exemption under the said Notification for the period prior to 27-2-2010. 6. As regards the demand for the period w.e.f. 27-2-2010, the said exemption is available if the taxable services are rendered for transmission of electricity. As held by the Hon"ble Apex Court in the case cited supra the expression "for" means "....