Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2014 (1) TMI AT This

  • Login
  • Cases Cited
  • Referred In
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2014 (1) TMI 407 - AT - Service Tax


Issues:
Prayer to dispense with pre-deposit of Service Tax of Rs. 18,19,099.00 for providing "Construction of Complex Services".

Analysis:
The appellants were engaged in developing and constructing a residential complex with more than twelve units, using their own resources to sell to prospective buyers. However, lower authorities alleged that the construction progressed with advances from buyers, indicating the appellants did not use their own resources entirely. The issue was whether providing construction services to buyers was justified.

At an interim stage, the Tribunal referred to a judgment by the Hon'ble High Court of Gauhati in the case of Magus Construction Pvt. Ltd. v. Union of India, which held that selling residential complexes without providing a separate service does not attract Service Tax, even if advances are received. This view was supported by stay orders in cases like Korath Gulf Links Builders Pvt. Ltd. v. Commr. of Central Excise, Cochin and Ocean Builders v. Commissioner of Central Excise, Mangalore. Additionally, the Tribunal cited Board's Circular No. 108/2/2009-S.T., dated 29-1-2009, to assert that builders selling flats do not incur Service Tax liability.

Based on the above legal precedents and circular, the Tribunal found that the appellants had a strong prima facie case in their favor. Consequently, the Tribunal decided to dispense with the pre-deposit condition of Service Tax and allowed the application in favor of the appellants. The decision was pronounced in open court on 23-8-2011.

 

 

 

 

Quick Updates:Latest Updates