2024 (6) TMI 15 - AT - Service Tax

Liability to pay service tax under Residential Complex Service for construction services - HELD THAT - On perusal of the records, it is seen that the contracts for construction services rendered by appellant are composite in nature. The quantification has been made after giving abatement in respect of the materials used as per Notification No.1/2006. Taking these aspects into consideration, the demand of service tax made under the category of construction of Residential Complex Service for the period prior to 1.7.2012 cannot sustain. The Tribunal in the case of Real Value Promoters Pvt. Ltd. 2018 (9) TMI 1149 - CESTAT CHENNAI had held that demand on construction services for the period prior to 1.7.2012 which involves composite contracts can be made only under Works Contracts Service (WCS). The said decision was followed by the Tribunal in the case of Jain Housing Construction Ltd 2023 (2) TMI 1044 - CESTAT CHENNAI which was maintained by the Hon ble Apex Court. Thus, we are of the opinion that the demand cannot sustain and requires to be set aside. The impugned order is set aside. The appeal is allowed with consequential relief, if any.

Summary

The appellant, engaged in construction services, did not pay service tax on amounts received for constructing Tsunami shelters. Tribunal ruled demand of service tax under Residential Complex Service not sustainable. Demand set aside, appeal allowed. (Case: Appellate Tribunal CESTAT CHENNAI, Citation: 2024 (6) TMI 15 - CESTAT CHENNAI)