Apparently buckling under pressure, the government has decided to exempt cable multi-system operators (MSOs) from the service tax net.
In a notification issued on Friday, the government said that the decision was taken in public interest.
The proposal to bring MSOs under the service tax net, as part of this year's Budget proposals, had seen the operators resorting to an indefinite strike on August 17, though it was called off just after 24 hours.
The MSOs and cable operators had said they were calling off the agitation in view of the Olympics, but added that if the government did not agree to their demand, the agitation would be revived.
The government's decision has been welcomed by the MSOs. Virendra Gaur of the All-India Cable TV Forum, the body which had given the strike call, welcomed the decision.
However, he said the government should also exempt last-mile operators from service tax.