2018 (2) TMI 1126 - AT - Service Tax

Construction of individual residential houses for Rajasthan Housing Board - case of appellant is that these houses are not to be considered as residential complexes as they do not share any common facilities and hence do not attract service tax - Held that - Since a categorical finding is required before confirming tax liability under Residential Complex Service , we find it fit and proper to set aside the impugned order and to remand the matter to the Original Authority for a fresh decision - appeal allowed by way of remand.

Summary

Issues:
Tax liability on construction of individual residential houses for Rajasthan Housing Board.

Analysis:
The appeal challenged the order of the Commissioner of Central Excise-I, Jaipur, regarding the tax dispute related to the construction of individual residential houses for Rajasthan Housing Board. The appellant contended that the houses constructed did not constitute residential complexes as they lacked common facilities, hence not attracting service tax. The appellant argued that the Original Authority did not examine the factual position or the existence of common facilities as per the approved layout to determine tax liability. Reference was made to previous Tribunal decisions supporting the appellant's position. The respondent reiterated the lower authorities' findings, emphasizing the appellant's responsibility to prove the absence of common facilities.

The impugned order highlighted that housing colonies by the Rajasthan Housing Board typically comprise multiple houses with common facilities, and a residential complex could consist of more than 12 individual houses with shared amenities. The Tribunal referred to a previous case involving similar issues and composite contracts liable to service tax. The Tribunal emphasized the need for specific findings supported by evidence regarding the presence of common facilities within the approved layout to determine tax liability accurately. As such, the Tribunal set aside the impugned order and remanded the matter to the Original Authority for a fresh decision, instructing a detailed examination of the nature of the contract, approved layout, and availability of common facilities for the residential units.

In conclusion, the Tribunal found the impugned order unsustainable in determining tax liability for the construction of residential complexes and allowed the appeal by remanding the matter for a fresh decision. The Tribunal stressed the necessity of specific findings supported by evidence before confirming tax liability under "Residential Complex Service," directing a thorough examination of all relevant supporting documents and providing the appellant with an opportunity to present their case. The impugned order was set aside, and the appeal was allowed by way of remand for further assessment and decision by the Original Authority.