No Service Tax Payable On Laying Down Water Supply Pipelines For Govt.: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ruled that service tax is not applicable on the laying of water supply pipelines, as it constitutes a government activity for public welfare. The tribunal held that such services fall under the category of sovereign functions, which are exempt from service tax. This judgment provides clarity on the taxability of similar infrastructure projects undertaken by the government or its contractors, ensuring that public utility services are not burdened with additional taxes.