2014 (1) TMI 256 - AT - Service Tax

Waiver of pre deposit - Stay application - Demand of service tax - Construction of Complex Services - whether Service Tax is applicable to construction of such houses for the benefit of low income group of people - Held that - appellant rendered the service of construction of residential buildings to the Housing Corporation and received consideration for the same - residential complex comprising more than 12 dwelling units would attract Service Tax under the aforesaid Head but individual residential units could not be considered as residential complex hence its construction would not attract the levy. This view was followed in the case of Vinod Kumar Goyal 2011 (3) TMI 436 - CESTAT, NEW DELHI also. It is not in dispute in the present case that the residential units were constructed as two-storeyed blocks, each consisting of less than 12 units. It is debatable as to whether these complexes can be considered to be residential complexes for the purpose of levy of Service Tax - Stay granted.

Summary

Issues:
1. Applicability of Service Tax on construction of residential complexes for low-income groups.
2. Claim of waiver and stay in respect of adjudged dues.
3. Interpretation of relevant case laws - Macro Marvel Projects Ltd. and Vinod Kumar Goyal.

Analysis:

Issue 1: Applicability of Service Tax on construction of residential complexes for low-income groups:
The appellant sought waiver and stay of an amount demanded as Service Tax and Education Cesses for constructing houses for low-income groups. The Tribunal found that the Service Tax levy on construction of residential complexes does not depend on the economic status of the beneficiaries. It was held that Service Tax is applicable even for construction of houses for low-income groups. The appellant provided construction services to the Housing Corporation and received consideration, making them liable for Service Tax. The Tribunal's decision was based on the principle that economic status does not exempt construction services from Service Tax.

Issue 2: Claim of waiver and stay in respect of adjudged dues:
The appellant argued that a major part of the demand was beyond the normal period of limitation and cited precedents to support their case. The Tribunal considered the submissions and granted waiver of pre-deposit and stay of recovery concerning the adjudged dues. This decision was influenced by the arguments presented and the cited decisions supporting the appellant's position.

Issue 3: Interpretation of relevant case laws - Macro Marvel Projects Ltd. and Vinod Kumar Goyal:
The Tribunal analyzed the decisions in Macro Marvel Projects Ltd. and Vinod Kumar Goyal cases. It was established that a residential complex with more than 12 dwelling units attracts Service Tax, but individual residential units do not. Since the residential units in question were constructed as two-storeyed blocks with less than 12 units each, the debate arose on whether these complexes qualify as residential complexes for Service Tax levy. The Tribunal found that the cited decisions aligned with the appellant's arguments, leading to the grant of waiver and stay regarding the adjudged dues.

This detailed analysis of the judgment addresses the issues of Service Tax applicability, waiver and stay of dues, and interpretation of relevant case laws, providing a comprehensive understanding of the Tribunal's decision.