2018 (6) TMI 718 – CESTAT CHENNAI – TMI – Erection, Commissioning and Installation Services – whether the appellant is liable to pay service tax on the activity of trenching and laying telephone cables? – Board's Circular No. 123/5/2010-TRU dated 24.5.2010 – Held that:- The issue stands covered by the clarification issued vide Board's Circular No. 123/5/2010-TRU dated 24.5.2010 which clarified that laying cables under or alongside roads is not a taxable service.
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In Commissioner of Central Excise, Chandigarh Vs. Rajeev Electrical Works [2010 (5) TMI 162 – PUNJAB & HARYANA HIGH COURT], the Hon'ble High Court has held that laying the pipes in wall/roof/floor for crossing of wires, fixing the junction box, fixing the cables trays to lay
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Service Tax Department under the category of 'Erection, Commissioning and Installation Services'. During audit, it was noticed that the appellant was rendering the services of trenching and laying telephone cables to BSNL and to other public sector undertakings directly and also through sub-contractors. It was noticed that they were not discharging service tax on the gross taxable value. Show cause notice was issued proposing to demand the differential service tax along with interest and also for imposing penalties. After due process of law, the original authority confirmed the service tax demand of ₹ 83,23,529/ along with interest and imposed equal penalty with an option for reduced penalty under proviso to section 78 of the
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s trays to lay the cables, digging the earth to lay the cables and digging the earth pits for earthing etc. would not amount to installation of plant, commissioning and is not leviable to service tax under Erection, Commissioning and Installation Services. Similar view was taken by the Tribunal in the case of Upadhaya Enterprises Vs. Commissioner of Central Excise, Jaipur – 2011 (22) STR 606 (Tri. Del.). 3. The ld. AR Shri K.P. Muralidharan reiterated the findings in the impugned order. 4. Heard both sides. 5.The issue stands covered by the clarification issued vide Board's Circular cited supra which clarified that laying cables under or alongside roads is not a taxable service. In the decisions cited supra, the Tribunal as well as the
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