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2015 (11) TMI 1489 - AT - Service TaxDemand of service tax - Commercial and Industrial Constructions Service - whether the respondent herein is liable to discharge the service tax during the period 10.09.2004 to 31.03.2008 on an amount received by him towards the work executed which the department feels falls under the category of "Commercial and Industrial Constructions Service" while the respondent feels that the work is executed under a "works contract" hence would be liable for tax only from 01.06.2007 - Held that:- penalty which is sought to be imposed is unwarranted in as much the entire issue of whether the composite contract/works contract should be vivisected or not was the question of dispute before the judicial forum. The five Members full Bench of the Tribunal has concluded the issue in March 2015 hence the issue being a question of classification and the valuation, we are of the view that the respondent could be entertained a bonafide belief as to non-applicability of service tax on the contract executed by them. We find that the respondent had a reasonable cause of non-discharging the service tax for the material period in question. By invoking the provisions of Section 80 of the Finance Act, 1994, we waive the imposition of penalty under Section 76 of the Finance Act, 1994. - Petition disposed of.
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