Service tax exempt on laying down of optical fibre cable network since beneficiary is Government

Telecommunications Consultants India Ltd. Vs Union of India & Ors. (Delhi High Court) Delhi High Court held that the work in the nature of laying down of “Optical Fibre Cable Network” to benefit the defence forces for better communication is exempt from service tax since the ultimate beneficiary of the service is Government of India. Facts- The respondent, Bharat Sanchar Nigam Limited [‘BSNL’],a Public Sector Undertaking floated a tender to roll out an exclusive and dedicated “Optical Fiber Cable Network” to be owned and operated by the Defence Services under the ‘NFS Project...