2018 (5) TMI 834 - AT - Service Tax

Construction of residential complex for Rajasthan Housing Board - Liability of service tax - Held that - the identical issue has come up before the Tribunal in the case of M/s Kumawat Contractor vs. CCE, Jaipur 2017 (6) TMI 1190 - CESTAT NEW DELHI , where it was held that Without inferring the fact regarding applicability of the tax entry in the present case, it is necessary to examine as to whether the residential complex, having individual houses, is in fact, having common areas as mentioned in the statutory definition - following the decision, the matter remanded to the adjudicating authority with the similar direction - appeal allowed by way of remand.

Summary

Issues:
Tax liability for construction of residential complex for Rajasthan Housing Board under Section 65(105)(zzzh) of the Finance Act, 1994.

Analysis:
The appellant, engaged in construction, disputed tax liability for constructing residential complexes for the Rajasthan Housing Board. The Revenue contended that the individual houses were part of a residential complex with common facilities, thus attracting tax. The Tribunal referred to a similar case where composite contracts involving supply of materials and services were held liable to service tax post-01.06.2007. The Tribunal emphasized the need to examine if the residential complex had common areas as per the statutory definition. The original authority's decision was set aside, and the matter was remanded for a fresh decision considering the law laid down by the Supreme Court. The appellant was granted an opportunity to present their case before a new decision was made. The Tribunal allowed the appeal by way of remand, following a similar direction from an earlier order.

In conclusion, the Tribunal found the impugned order regarding tax liability for constructing residential complexes unsustainable and remanded the matter for a fresh decision. The decision highlighted the importance of verifying the presence of common facilities within the approved layout to determine tax applicability accurately. The appellant was granted the opportunity to present their case before the original authority made a new decision. The Tribunal allowed the appeal by way of remand, aligning with a previous order in a similar context.