2009 (5) TMI 208 - AT - Service Tax

Revenue proceeded against the appellants on the ground that they are liable to discharge Service Tax under the category of taxable service Construction of Residential Complex Services . - Board s Circular No. 108/02/2009-ST., clarified and it has been held that developers/builder/promoters are not liable to pay Service Tax under this Category. It is stated that this Circular was issued 3 days after the order was passed. Therefore, the Adjudicating Authority did not have the benefit of seeing this clarification. In these circumstances, we are of the view that the matter has to be examined by the Adjudicating Authority de novo taking into account this circular

Summary

The Appellate Tribunal CESTAT, Bangalore required the appellant to pre-deposit Service Tax, Education Cess, SHE Cess, interest, penalty under various sections, and daily penalty. The matter was remanded to the Adjudicating Authority for reevaluation based on a clarifying circular, with a deadline of three months for the adjudication.