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2016 (2) TMI 646 - AT - Service TaxDemand of service tax was confirmed on the ground that the appellant had provided “Commercial or Industrial Construction Service” (CICS), “Maintenance and Repair Service”, and “Site formation and clearance, excavation and earthmoving and demolish Service” to Giral Lignite Thermal Power Project during the period 08.06.2005 to 17.10.2008 but did not pay service tax on the gross amount received from the service recipient. Held that:- it is evident that the appellant was not unjustified in holding the reasonable belief that works contracts were not taxable under the Finance Act, 1994prior to 01.06.2007 because even the speech of the Hon'ble Finance Minister quoted above gave the same impression. Indeed there was a great deal of confusion whether works contracts were vivisectable and liable to service tax prior to 01.06.2007, so much so that the Hon’ble President CESTAT setup Larger Bench of five Members to decide the issue and the issue was thus decided by the Larger Five-Member Bench of CESTAT in the case of L&T - In these circumstances, it is not possible to sustain the allegation of wilful misstatement / suppression of facts on the part of the appellant. - Demand set aside - Decided in favor of assesee.
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