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2019 (2) TMI 772 - AT - Service TaxLevy of service tax - construction services - service tax liability on the builders for the services provided before 01.07.2010 - Held that - The self same issue was considered by the Bench in detailed in the case of M/s Mehta & Modi Homes 2019 (2) TMI 476 - CESTAT HYDERABAD and as also in the case of M/s Kolla Developers & Builders 2018 (11) TMI 164 - CESTAT-Hyderabad and held that prior to 01.07.2010 service tax liability will not arise on the builders. All the impugned orders are unsustainable - appeal allowed - decided in favor of appellant.
Issues:
Service tax liability on builders for services provided before 01.07.2010. Analysis: The case involved multiple appeals with identical issues regarding the service tax liability on builders for services provided before 01.07.2010. The appellants were registered for works contract services related to Construction of Residential Complex Services. They received amounts from customers for land sale and construction agreements, discharging tax liability on construction agreements. However, they stopped paying service tax based on a CBEC clarification from January 2009 to September 2009. Show cause notices were issued, demanding service tax, interest, and penalties. The Adjudicating Authority confirmed the demands and imposed penalties, which were upheld by the First Appellate Authority. The appellants argued that the issue of service tax levy on builders before 01.07.2010 was settled in previous cases decided by the Tribunal. The Departmental Representative contended that while the appellants did not dispute the tax liability, they contested the discharge based on a CBEC Circular. The facts were not in dispute, with demands spanning different periods before 01.07.2010. The Tribunal had previously ruled on similar cases, holding that service tax liability did not arise on builders before 01.07.2010. Therefore, the impugned orders were deemed unsustainable, set aside, and the appeals allowed with any consequential reliefs. In conclusion, the Tribunal found in favor of the appellants, setting aside the demands and penalties imposed by the lower authorities. The judgment clarified the non-applicability of service tax liability on builders for services provided before 01.07.2010, aligning with previous decisions on the matter.
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