CESTAT Exempts Construction and Transportation Services from Service Tax u/s 65 Due to Classification Issues.

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....CESTAT ruled against service tax demands on multiple construction activities. The tribunal held that pre-negative list period tax demands were invalid without proper service classification. Construction of roads and reservoir tiling were exempt as works contracts for roads and dams u/s 65(105)(zzzza). Transportation services by individual truck owners not issuing consignment notes were deemed non-taxable as they did not qualify as goods transport agencies u/s 65(50a). Consequently, reverse charge mechanism was inapplicable. Associated interest and penalty demands were also set aside. Appeal allowed with complete relief from service tax liability across all disputed services.....