2017 (12) TMI 1646 - AT - Service Tax

Scope of SCN - Construction of Residential Complexes - liability of service tax on easement rights - only ground of the Revenue is that the impugned order travelled beyond the SCN and held on the taxability of the construction service itself - Held that - The concurrent findings of the lower authorities on the issue of easement rights and the tax liability was not specifically contested with any substantial ground by Revenue; rather contest is only on other findings not relevant to the SCN - on the service tax demand with respect to consideration of easement rights, the findings by the lower authorities cannot be interfered with either on factual or legal basis - appeal dismissed - decided against Revenue.

Summary

Issues:
1. Appeal against refund order passed by Commissioner of Central Excise, Madurai.
2. Tax liability of the respondent for consideration received from allottees for easement rights.
3. Whether easement rights can be considered for tax liability under Construction of Residential Complexes.
4. Revenue's appeal stating that the impugned order exceeded the show cause notice (SCN).
5. Contest on the taxability of construction service itself.
6. Whether additional tax can be collected when the main activity is not taxable.
7. Lower authorities' findings on easement rights and tax liability not specifically contested by Revenue.
8. Service tax demand related to consideration of easement rights.

The judgment involves an appeal by the Revenue against a refund order issued by the Commissioner of Central Excise, Madurai. The Commissioner upheld the findings that the consideration received by the respondent for easement rights from allottees of respondent units should not be taxed under Construction of Residential Complexes. The Revenue contended that the impugned order went beyond the scope of the show cause notice by addressing the taxability of construction services. The Ld. Counsel for the respondent did not dispute the tax liability under Construction of Complex service but supported the lower authorities' decision that no additional tax could be imposed as the main activity was not taxable. The appeal focused on the taxability of easement rights, with the lower authorities' findings deemed uncontestable on factual or legal grounds. The Tribunal found no merit in the Revenue's appeal and dismissed it, affirming the lower authorities' decision on the tax liability related to easement rights.