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2023 (8) TMI 1047 - AT - Service TaxDemand of service tax - amount received post sale deed date - It appeared to Revenue that the cost of construction completed up to the date of introduction of tax w.e.f. 16.06.2005, receipts covered by the same deed (sale amount), and hence, the question of allowing further deduction on account of construction work done before the date of introduction of tax, does not arise. HELD THAT - The taxability no longer exists in view of the clarification by the Board vide aforementioned Circular No. 151/2/2012-ST dated 10.02.2012, for the construction of residential complex prior to 01.07.2010. Appeal allowed.
Issues involved: Whether the Appellant/Assessee is liable to demand of service tax for the period 2005-2006 on the activity of construction of residential project involving construction of 30 flats.
Summary: The Appellant, engaged in construction of residential complex service, was under scrutiny for not paying service tax on certain amounts received after 16.06.2005. The Revenue contended that the Appellant should pay tax on the amounts received even prior to 16.06.2005 for work done after that date. The Appellant argued that no tax was payable on amounts received before the imposition of service tax. The dispute revolved around the construction of 30 flats under Aparna Residential Project, with sale deeds executed prior to 16.06.2005. The Revenue proposed a tax demand on the balance amount received post-sale deed dates. The Appellant challenged the demand, citing Circular No. 151/2/2012-ST dated 10.02.2012, which clarified no service tax liability for construction of residential complex services until 01.07.2010. Relying on a Tribunal ruling, the Appellant sought relief from the tax demand. Upon hearing both parties, the Tribunal noted the clarification by the Board in Circular No. 151/2/2012-ST dated 10.02.2012, exempting service tax liability for construction of residential complex services before 01.07.2010. In light of this, the Tribunal allowed the Appeal, setting aside the Impugned Order. The Appellant was granted consequential benefits as per the law.
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