2020 (4) TMI 202

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..... to this case is that it should not apply to fibre optical cables because it dealt with only electrical cables. This issue has been examined at length by the Hon ble Tribunal, Mumbai in the case of COMMISSIONER OF CENTRAL EXCISE, NAGPUR VERSUS H.M. SATYANARAYAN ENGINEERS CONTRACTORS [ 2018 (8) TMI 736 - CESTAT MUMBAI] and it has been held that there is no difference between the activity of laying an electrical cable and the activity of laying an optical fibre cable and the Board circular applies in both the cases and no service tax can be charged on this activity. Demand do not sustain - appeal allowed - decided in favor of appellant. - SERVICE TAX APPEAL No. 2230 OF 2012 - A/30841/2020 - Dated:- 21-2-2020 - HON BLE Mr. S.K. M .....

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..... cal fibre cables for BSNL as per contracts. The case of the Department is that such laying of cables amounts to rendering Erection, Commissioning and Installation Service . Accordingly, the demands have been made. He would submit that the question of service tax on laying of cable under or along side roads was clarified by CBEC vide circular No. 123/5/2010-TRU, dated 24.05.2010 in the table, in para 3 of the circular at S.No. 2, as follows: S.No. Activity Status 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. .....

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..... t should not apply to fibre optical cables because it dealt with only electrical cables. We find that this issue has been examined at length by the Hon ble Tribunal, Mumbai in the case of H M Satyanarayan Engineers Contractors (supra) and it has been held that there is no difference between the activity of laying an electrical cable and the activity of laying an optical fibre cable and the Board circular applies in both the cases and no service tax can be charged on this activity. As this issue is no longer res integra, we respectfully follow the ratio laid down by the Tribunal Mumbai and hold that the impugned order is unsustainable and needs to be set aside and we do so. 7. The impugned order is set aside and the appeal is allowed. .....

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