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TaxTMI 
TaxTMI 
TaxTMI 
2026 (1) TMI 323
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.... in laying of underground telecom/optical fibre cables using trenchless technology (Horizontal Directional Drilling) as well as conventional trenching methods for major telecom operators such as BSNL, Airtel, Vodafone, Reliance and Tata. 2.1. The scope of works executed by the appellant includes the following activities: - (a) Route survey and alignment; (b) Obtaining Right of Way (ROW) permissions from statutory authorities; (c) Trenching / HDD drilling and laying of ducts; (d) Pulling / blowing of OFC cables; (e) Jointing, splicing and termination; (f) Installation of joint chambers, route markers and GI pipe protection; (g) Restoration of roads and surfaces; and (h) Periodic maintenance of telecom cables. 2.2. The appellant executes: - (i) Pure service contracts; (ii) Composite works contracts involving supply of materials and services; and (iii) Pure supply contracts liable to VAT only. 2.3. The appellant has duly discharged VAT/WCT and Service Tax, as applicable, and has not availed CENVAT credit of Service Tax. The Service Tax liability of the above said activities rend....
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.... rendering the entire computation arbitrary and illegal. Further, the appellant submitted a detailed calculation and claimed that they have in fact, made excess payment amounting to Rs.28,68,418/-. (iii) Accordingly, the appellant submits that the demand confirmed on account of 'Sundry Debtors' mentioned in the books of accounts is not sustainable. 3.2. Demand under Point of Taxation Rules - Rs. 15,44,091/- : (i) In respect of the above demand, the appellant has pointed out that the contracts executed by them were continuous supply of service under Rule 2(c) of the Point of Taxation Rules, 2011 read with Notification No. 28/2011‑ST. Under Rule 3(b), service is deemed completed only upon milestone certification and measurement. Hence, Service Tax cannot be demanded on unrealised or uncertified amounts. (ii) Further, laying of cables under or alongside roads is not liable to service tax as clarified by CBEC vide Circular No. 123/5/2010‑TRU. (iii) Thus, the appellant contends that the demand of Service Tax confirmed on this count is not sustainable. 3.3. Disallowance of Abatement - Rs. 19,83,467/- : (i) It is their....
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....x confirmed in the impugned order is not sustainable as all the amounts received by them were in connection with the exempted activity. 3.7. The appellant also contested the demands confirmed in the impugned order on the ground of limitation. It is their submission that they have not suppressed any information from the department; that in fact the demands have been raised and confirmed on the basis of information available in the records maintained by them. Thus, they submit that the demands confirmed against by invoking extended period of limitation are not sustainable and are therefore required to be quashed. In this context, the appellant points out that in the present case, the demand confirmed in the impugned order pertains to the period from 2008-09 to 2011-12 and the Show Cause Notice bearing C. No. V(15)71/ST-Adjn/Commr/14/1550 was issued on 22.04.2014 and thus, most of the demand confirmed is barred by limitation and hence, unsustainable in law. 3.8. In view of the above submissions, the appellant has prayed for setting aside the demands of Service Tax confirmed in the impugned order, along with interest and penalty thereon. 4. The Ld. Authorized Representative of....
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....truction 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 construction of and the completion, finishing, repair, alteration, renovation, restoration or similar activities pertaining to buildings, civil structures, pipelines or conduits. Therefore, only such electrical works that arc parts of (or which result in emergence of a fixture of) buildings, civil structures, pipelines or conduits, are covered under the definition of this taxable service. Further, such activities undertaken in respect of roads, railways, transport terminals, bridges, tunnels and dams are outside the scope of levy of service tax under this taxable service. (ii) Under 'Erection, commissioning or installation services', the activities relevant to the instant issue are (a) the erection, commissioning and installation of plant, machinery, equipment or structures; and (b) the installation of electrical and electronic devices, in....
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.... seen that the demand of Service Tax has been confirmed under five different categories, as mentioned in paragraph 2.4 of this Order (supra). However, we find that the appellant has in fact received the entire consideration for the activity of laying of cables under or alongside roads, which has been clarified as an activity not liable to Service Tax vide the C.B.E.C. Circular cited supra. Hence, we are of the considered view that the entire demand confirmed in the impugned order under these specific categories are not liable to Service Tax, as all the amounts received by the appellant pertain to laying of cables under or alongside roads, which is not leviable to Service Tax as clarified by C.B.E.C. vide Circular No. 123/5/2010‑TRU. Accordingly, we hold that the entire demand of Service Tax confirmed in the impugned order is not sustainable and hence, we set aside the same. 7. As regards the appellant's contentions on the ground of limitation, we find that the appellant have not suppressed any information from the Department. In fact, the demands have been raised and confirmed on the basis of information available in the records maintained by them. Thus, we hold that the d....