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2024 (11) TMI 348 - AT - Service TaxService tax on the construction services rendered for the period prior to 1.7.2010 - HELD THAT - We find the assertion of learned Advocate is correct in as much as various Benches of CESTAT have taken a consistent view that the service tax was not leviable on a developer prior to 1.7.2010, by following the decision of Larsen Toubro Ltd. 2015 (8) TMI 749 - SUPREME COURT . Thus, no justification for levy of service tax on the appellant / developer for the period prior to 1.7.2010 and hence, the impugned order cannot sustain.
Issues:
Levy of service tax on the developer prior to 1.7.2010. Analysis: The appellant, engaged in construction services, challenged the demand of service tax for the period April 2008 to March 2009. The issue was whether service tax could be levied on the developer prior to 1.7.2010. The appellant argued that the levy of service tax on developers before 1.7.2010 had been set aside in various CESTAT benches, following the decision in CCE & CC Kerala Vs Larsen & Toubro Ltd. The Assistant Commissioner supported the lower authorities' findings. The Tribunal considered the arguments and judicial precedents. It noted that several CESTAT benches consistently held that service tax was not applicable to developers before 1.7.2010, following the Supreme Court decision in CCE & CC Kerala Vs Larsen & Toubro Ltd. The Tribunal referred to a recent order in M/s. Casa Grande Private Ltd. Vs CST Chennai, emphasizing that no service tax could be levied on construction of residential complexes before 1.7.2010, whether as a service or a works contract. Based on the precedents and legal position, the Tribunal concluded that there was no justification for levying service tax on the appellant for the period before 1.7.2010. Therefore, the impugned order upholding the service tax demand was set aside, and the appeal was allowed with any consequential benefits as per law.
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