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TMI Blog2017 (2) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... in contractor. The appellant was not registered with the Service Tax department and, therefore, a case was booked against the appellant proposing confirmation of demand and interest and also imposition of penalty under Sections 76, 77 and 78 of the Finance Act, 1994. Aggrieved by the said order, the appellant approached the Commissioner (Appeals) who rejected his appeal. Aggrieved by the order, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clarified on various issues relating to Service Tax on the builders. Vide said Circular, CBE&C has clarified as follows: - "2. A view has been expressed that once an agreement of sale is entered into with the buyer for a unit in a residential complex, he becomes the owner of the residential unit and subsequent activity of a builder for construction of residential unit is a service of 'constr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ual customer would not fall in the definition of 'residential complex' as defined for the purposes of levy of service tax and hence construction of it would not attract service tax. 3. The matter has been examined by the Board. Generally, the initial agreement between the promoters / builders / developers and the ultimate owner is in the nature of 'agreement to sell'. Such a case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r / developer, who himself provides service of design, planning and construction; and after such construction the ultimate owner receives such property for his personal use, then such activity would not be subjected to service tax, because this case would fall under the exclusion provided in the definition of 'residential complex'. However, in both these situations, if services of any pers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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