2015 (9) TMI 102

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..... construction of residential and commercial complexes at Visakhapatnam. They mostly purchase lands from the owners and construct flats and sell them to their clients. In the case of land owned by the land owners, they entered into development agreements with the land owners with the agreement that certain portion of the constructed property would be handed over to them after completion. The appellants entered into sale agreements with prospective buyers of flats. In other cases, they entered into sale agreement with the buyers and after semi-finished flats are registered, they entered into construction agreements with them for completion of the unfinished flats. 2. It is the submission of learned counsel that the appellants were paying serv .....

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..... s that service tax is liable to be paid by the builder/developer at the time of possession or right in the property of the said flats are transferred to the land owners. He submitted that not all but one project being executed by the appellant is still in the initial stage of construction. Therefore, the demand for proposal in the show-cause notice on owner's share of flats yet to be transferred to them is not sustainable. He also submitted that value of the materials, cost of land on the gross value was not deducted for levy of service tax even though the details were provided by the appellants. This was done on the ground that Chartered Accountant certificate was not produced by them and it is his submission that it is not a requireme .....

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..... ible. Exemption of service tax on value of the materials is an exemption and this burden cannot be shifted to the Revenue by merely specifying an amount and saying that the Revenue should work out the actual abatement. 7. Even before us, learned counsel claimed that he has enclosed the Chartered Accountant's certificate. We considered the C.A's certificate given in respect of Arihant Towers (a project). It was noticed that in this case, the appellant had mentioned the value of materials Rs. 1,17,25,640/-, administration expenses Rs. 93,77,754/- profit attributable to material Rs. 16,88,272/-. In page 79 of the Appeal Memo, which is part of the reply to the show-cause notice issued to the appellant, it is mentioned that show-cause n .....

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