2009 (2) TMI 731 - AT - Service Tax

Pre-deposit - waiver of - valuation - includibility - It is very clear that the Service Tax assessee is not required to include the cost of the land and stamp duty - demand of pre-deposit waived.

Summary

Issues:
1. Requirement of pre-deposit by the appellant.
2. Demand for interest, penalties, and differential tax.
3. Inclusion of land value in gross receipt for Service Tax assessment.
4. Interpretation of Board's Instruction No. B1/6/2005-TRU.
5. Validity of the agreement between the appellant and apartment takers.
6. Granting of full waiver of pre-deposit by the tribunal.

Analysis:
1. The judgment addressed the issue of the appellant being required to pre-deposit an amount along with Education Cess and other penalties as per the impugned order.

2. The tribunal noted the demand for interest under Section 75, penalties under Sections 76, 77, and 78, and differential tax due to the alleged non-inclusion of the land value in the gross receipt by the appellant.

3. The tribunal referred to Board's Instruction No. B1/6/2005-TRU, highlighting that the taxable service in construction of a residential complex does not include the cost of land and stamp duty. The tribunal found no merit in the revenue's stand on this matter.

4. The interpretation of the Board's Instruction was crucial in determining the Service Tax liability of the appellant, emphasizing that the land value should not be considered in the gross amount charged for service tax.

5. The tribunal considered the agreement between the appellant and the apartment takers, which likely played a role in supporting the appellant's position regarding the non-inclusion of land value in the gross receipt for Service Tax purposes.

6. Ultimately, the tribunal decided to grant a full waiver of the pre-deposit of the differential amount demanded and other dues until the appeal's disposal, citing lack of merit in the revenue's position and invoking judgments supporting the continuation of the stay order even after the expiry of 180 days.

This detailed analysis of the judgment provides insights into the issues raised, the legal interpretations made, and the final decision rendered by the tribunal in favor of the appellant.