Case Law Analysis
|Custom, Excise & Service Tax Tribunal
Works Contract Service Exemption | CESTAT Hyderabad Rules RailTel's OFC Project Not Taxable as Business Support Service
CESTAT Hyderabad clarifies that RailTel's Optical Fibre Cable (OFC) laying project under a composite contract with Indian Railways qualifies as a Works Contract Service, exempt from service tax. The ruling rejects the department's classification as Business Support Service, saving RailTel ₹1.6 crore in tax demands and setting a precedent for infrastructure projects with similar contractual structures.