2017 (4) TMI 226

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..... /clients and were not doing any execution of works contract and elements of definition of works contract , therefore, are not found present - paragraph 3 of C.B.E.C. Circular No. 108/2/2009-S.T. dated 29.1.2009 says that the persons who are providing services of construction of residential complex in the form of designing, planning, developing and so on will not be subject to service tax as such services would fall under the exclusion provided under definition of residential complex - demand set aside - appeal allowed - decided in favor of appellant.
Shri M. V. Ravindran, Judicial Member And Shri Ashok K. Arya, Technical Member Mr. V. Unnikrishnan, Advocate For the Appellant Mr. Pakshi Rajan, A.R. For the Respondent ORDER Per Ashok K .....

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..... ces of works contract in the activity being performed by the appellants. 4.1. The appellants were rendering construction of complex service as they were designing, planning, developing and clearing site on their own land for construction activities for buyers/clients and were not doing any execution of works contract and elements of definition of works contract , therefore, are not found present. It is made clear that the activities of the appellants fall under the category of construction of residential complex service and such services for the period of January 2009 to March 2009 were not liable to service tax which is clear by virtue of the paragraph 3 of C.B.E.C. Circular No. 108/2/2009-S.T. dated 29.1.2009; it says that the persons wh .....

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..... 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 person like contractor, designer or a similar service provider are received, then such a person would be liable to pay service tax." 4.2 It is however, made clear that such services become taxable only after 1.7.2010 when the Explanation was added by the Finance Act, 2010 dated 8.5.2010 in definition of construction of complex service to the provisions of Section 65(105)(zzzh) of the Finance Act, 1994. 5. Considering above discussion, the impugned order is set aside and the appeal allowed with cons .....

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