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TMI Blog2018 (2) TMI 833X X X X Extracts X X X X X X X X Extracts X X X X ..... inst them with reference to their service tax liability under the category of "construction of complex service". On completion of inquiry, proceedings were initiated against them to demand and recover service tax under the said category. The original authority adjudicated the case. The Original Authority confirmed service tax liability of Rs. 2,44,72,251/- and Rs. 1,10,71,204/- on the appellant. He also imposed penalties under Section 76, 77 and 78 of the Finance Act, 1994. 2. Ld. Counsel appearing for the appellant contested the findings and submitted on the following lines:- (a) The appellants are not liable to service tax under the category of "construction of complex service" as defined under Section 65(91a) read with Section 65(105)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plexes do not have any common facilities is not acceptable. The complexes having such large number residential units with common facilities are covered by tax entry correctly. Regarding application of works contract service, he submitted that the terms of each contract are to be examined and in case they are composite in nature, the ratio of Hon'ble Supreme Court in Larsen and Toubro Ltd. (supra) shall apply. 4. We have heard both the sides and perused the appeal records. 5. The first issue for decision is whether or not the appellants have undertaken the taxable activities of construction of complex service. We have perused the impugned orders. Admittedly, the required clarification is not available in the impugned order. Certain inquiri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Larsen and Turbo Ltd. - 2015 (39) S.T.R. 913 (S.C.), such composite contracts are liable to Service Tax only w.e.f. 01.06.2007, under the category of "Works Contract Services". Further, we also note that the original authority confirmed the Service Tax liability under Residential Complex Service / Works Contract Service on the ground that the appellants constructed residential units having common area and facility in the colony, in terms of agreement with Rajasthan Housing Board. This aspect is being contested by the appellant. A perusal of the impugned order indicates that the original authority examined the general scope of the term "Residential Complex" and inferred that generally housing colonies built by State Housing Boards w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with specific reference to availability of common facilities within the approved layout, in terms of statutory definition to the work executed by the appellant. The appellant shall be provided adequate opportunity to place their side of the case, before a fresh decision is taken by the original authority. The appeal is allowed to this extent, by way of remand." 7. We note that the Original Authority has to examine the applicability of the tax entry for construction of complex service/works contract service. On perusal of the factual details in the contract as well as the approved layouts, availability of common facilities etc as required by the tax entry is to be examined. It is clear that in case of composite works contract, the tax lia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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