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2023 (12) TMI 750 - AT - Service TaxLevy of service tax - construction of residential flats - period April 2010 to March 2011 - HELD THAT - The service tax is not chargeable for period prior to 01.07.2010 for construction of residential property/flats as clarified by the Board vide Circular No.151/2/2010-ST. Further post 01.07.2010, it is held that service tax has been wrongly demanded under the category of Construction of residential complex service and further hold that correct classification is Works Contract service following the precedent ruling of this Bench. The Impugned Order is set aside - Appeal allowed.
Issues: Whether the appellant is liable to service tax for the construction of residential flats for the period April 2010 to March 2011.
Summary: The Appellate Tribunal CESTAT Hyderabad, comprising Mr. Anil Choudhary, Member (Judicial) and Mr. A.K. Jyotishi, Member (Technical), heard the case where the appellant's liability for service tax on the construction of residential flats was in question. The appellant contended that the demand raised falls under the category of "construction of residential complex" and cited the Hon'ble Supreme Court's decision in Larsen & Toubro Ltd case, along with Section 65(105)(zzzza) u/s (Works Contract service). The appellant also referred to the precedent rulings of the Tribunal in similar cases. On the other hand, the learned AR relied on the Impugned Order. After considering the arguments presented, the Tribunal held that service tax is not chargeable for the period before July 1, 2010, as per Circular No.151/2/2010-ST. For the period post July 1, 2010, the Tribunal concluded that service tax was wrongly demanded under the category of "Construction of residential complex service" and should have been classified as "Works Contract service" following the precedent rulings of the Bench. Consequently, the Appeal was allowed, the Impugned Order was set aside, and the appellant was granted consequential benefits as per the law. *(Dictated and pronounced in the Open Court)*
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