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IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL

EASTERN ZONAL BENCH : KOLKATA

REGIONAL BENCH – COURT NO. 1

Service Tax Appeal No. 75998 of 2017

(Arising out of Order-in-Original No.155/PR.COMMR/ST-I/KOL/2016-17 dated

28.02.2017 passed by Commissioner of CGST & C EX, Kolkata)

M/s. Conelect Engineers and Contractors, : Appellant

33,Chittaranjan Avenue, 2^nd Floor, Kolkata-700012

VERSUS

Commissioner of Service Tax, Kolkata : Respondent

180, Shantipally, Rajdanga Main Road, Kolkata-700107.

APPEARANCE:

Shri Arun Kr. Agarwal & Ms. Pinky Khemka, C.A. for the Appellant

Shri P.Das, Authorized Representative for the Respondent

CORAM:

HON’BLE SHRI ASHOK JINDAL, MEMBER (JUDICIAL)

HON’BLE SHRI K. ANPAZHAKAN, MEMBER (TECHNICAL)

FINAL ORDER NO. 75386/ 2026

DATE OF HEARING :05.02.2026

DATE OF DECISION:05.02.2026

Order : [Per Shri Ashok Jindal]

The appellant is in appeal against the demand

of Service Tax for the period 2011-12 to 2014-15 of

Service Tax of Rs. 1,51,21,364/-.

2. The facts of the case are that the appellant is

engaged in business of laying and repair of electric

cables along with or under the roadside for and on

behalf of Calcutta Electricity Supply Corporation

(‘CESC’ hereafter). CESC is an electricity

transmission & distribution utility falls under clause

(k) of Section 66D of the Finance Act, 1994 are not

liable to Service Tax.

3. Revenue is of the view that as appellant is not

a transmission and distribution entity and engaged in

the work of repairs and installation. Therefore, they

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Appeal No.: ST/75998/2017-DB

are not entitled for benefit of Sec. 66 (D) (K) of the

Finance Act, 1994.

4. We find that the said issue has been settled by

this Tribunal in the case of Kusum Enterprises Vs.

Commissioner of Central Excise and Service Tax,

Guwahati-2022 (4) TMI 135 –CESTAT Kolkata

wherein this Tribunal observed as under:

“11. Heard both sides and perused the records of the

case the main argument of the appellant appeared to

be that the services undertaken by them are covered

by the Serial No. 29 (h) of Exemption Notification

24/2012-ST dated 20.06.2012 and M/s APDCL and

CAEDCL are covered under the definition of

electricity transmission or distribution utility in terms

of Clause 48 of Section 65 B (23) of Finance Act,

1994 and also that the services covered under the

negative list of Clause 668 of the Finance Act, 1994,

if they are liable to pay service tax M/s APDCL and

CAEDCL would also be liable to pay 50% service tax

on reversed charged mechanism in terms of Section

66B read with Notification 30/2012- ST dated

20.06.2012. Lastly, he claimed that in terms of

Serial No. 29 (h) of Notification 25/2012-ST dated

20.06.2012 is squarely applicable. Leamed Appellate

Commissioner has contends as follows and denies

the exemption.

In terms of para 29(h) of Notification No 25/2012-ST

dated 20.06.2012 service provided by a sub-

contractor by way of works contract to another

contractor providing works contract services which

are exempt, shall also be exempted. That means if

the sub- contractor are helping the main contractors

in providing exempted services falling under works

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Appeal No.: ST/75998/2017-DB

contract services, they are also exempted from

service tax. Such exemption should also be

considered for this service.

Now in the services of Construction and shifting/

Erection/ Testing/Charging/ Commissioning of 11KV

Line and 63 KVA S/S including augmentation etc.

provided by M/s Kusum Enterprises to APDCL,

components mentioned in Sec. 66D(k) are not

available. Such construction is not a transmission or

distribution service and secondly, it is not provided

by transmission or distribution utility as defined in

the Act. Section 66F(1) of the Finance Ac, 1994, very

specifically provides that unless otherwise specified,

reference to a service(herein referred to as main

service) shall not include reference to a service

which is used for providing main service. This section

also gives an illustration to understand this concept,

which is as under,

"The service by RBI, being the main service wi