2017 (2) TMI 260

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..... id clarification does not specifically states that there was any doubt regarding liability of sub-contractor in respect of services provided to main contractors. However, considering the similar nature of the service provider, invocation of Section 80 appears to be justified - penalties set aside - appeal disposed off - decided partly in favor of appellant. - Appeal No. ST/755/12 - - - Dated:- 16 .....

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..... They have however not paid the interest amount. Learned Counsel for the appellant argued that the appellant is a small time contractor and at the material time, was not fully aware of the law. He argued that at the material time, there was confusion about the liability of the sub-contractor. Learned Counsel argued that the doubt regarding liability of sub-contractor was cleared vide Boards Circul .....

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..... payment after entering into agreement to sell, the nature of transaction is not a service but that of a sale. Where a buyer enters into an agreement to get a fully constructed residential unit, the transaction of sale is completed only after complete construction of the residential unit. Till the completion of the construction activity, the property belongs to the builder or promoter and any serv .....

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..... n the instant case, the promoters/builders/developers). It is only after the completion of the construction and full payment of the agreed sum that a sale deed is executed and only then the ownership of the property gets transferred to the ultimate owner. Therefore, any service provided by such seller in connection with the construction of residential complex till the execution of such sale deed w .....

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..... e material time there were certain doubts regarding liability of Service Tax in relation to construction of a complex. The said clarification does not specifically states that there was any doubt regarding liability of sub-contractor in respect of services provided to main contractors. However, considering the similar nature of the service provider, invocation of Section 80 appears to be justified .....

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