TMI Blog2016 (2) TMI 646X X X X Extracts X X X X X X X X Extracts X X X X ..... se 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. - Application No. ST/STAY/50042/2014-CU[DB] In Appeal No.ST/50037/2014-CU[DB] - Final Order No.52553/2015 - Dated:- 28-7-2015 - MR. G. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Works contract service became taxable under the Finance Act, 1994 [Section 65(105)(zzzza)] only w.e.f. 01.06.2007 while the entire service rendition was completed prior to that date, (iii) works contracts were taxable by the state governments and were not liable to service tax prior to 01.06.2007 and therefore it had not taken registration as it was under a bona fide belief that composite (works) contracts were not taxable prior to 01.06.2007, (iv) there was no suppression or wilful misstatement and the entire demand was time-barred 3. The ld. Departmental Representative reiterated the contentions contained in the impugned order adding that not indicating the impugned demands under each service is not fatal. 4. We have considered the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s involved in the execution of a works contract. Thus, 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 vide Interim Order No.IO/ST/72-74/2015 dated 20.03.2015. In these circumstances, it is not possi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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