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TMI Blog2019 (2) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... CESTAT BANGALORE], where it was held that that for the period after 1.6.2007, the levy cannot sustain. The levy of service tax cannot sustain - appeal allowed - decided in favor of appellant. - Appeal No. ST/424/2012 - Final Order No. 43023/2018 - Dated:- 20-11-2018 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri V.S. Manoj, Advocate for the Appellant Ms. T. Usha Devi, DC (AR) for the Respondent ORDER Per Bench The appellant is engaged in execution of works contract. They were engaged by Tamil Nadu Police Housing Corporation Ltd. (TNPHCL) which is a Government of Tamil Nadu company wherein 100% of the shares are held by Tamil Nadu Government for construc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n for personal use, the same is excluded from the definition of residential complex contained in Section 65(91a) of Finance Act, 1994. The appellants were engaged by TNPHCL to construct quarters for police personnel. The contract was awarded vide GO No. 576 dated 8.7.2005 issued by the Government of Tamil Nadu. Since the quarters were constructed for the use of police personnel, the same is outside the purview of definition of construction of residential complex, as it is covered by the Explanation to the said definition. The ownership of the houses constructed vests with the Government of Tamil Nadu who allots houses to police personnel. There is no profit motive involved in these transactions and there is no renting or letting of these qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of swimming pools, acoustic applications or fittings and other similar services; or (c) repair, alteration, renovation or restoration of, or similar services in relation to, residential complex;] As per Section 65(91a) of the Finance Act, 1994 residential complex‟ means any complex comprising of:- (i) a building or buildings, having more than twelve residential units; (ii) a common area; and (iii) any one or more of facilities or services such as park, lift, parking space, community hall, common water supply or effluent treatment system, located within a premises and the layout of such premises is approved by an authority under any law for the time being in force, but does not include a complex which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x is not attracted. Personal use has been defined as permitting the complex for use as residence by another person on rent or without consideration. In this case what emerges is that ITC intended to provide the accommodation built to their own employees. Therefore it is covered by the definition of personal use in the explanation. The next question that arises is whether it gets excluded under the circumstances. The circular issued by C.B.E. C. on 24-5-2010 relied upon by the learned counsel is relavant. Para 3 of this circular which is relevant is reproduced below:- 3.? As per the information provided in your letter and during discussions, the Ministry of Urban Development (GOI) has directly engaged the NBCC for constructing reside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ghtly all the sub-contractors have paid the service tax. In such a situation in our opinion, there is no liability on the appellant to pay the service tax. 6.3 The said decision was followed by the Tribunal in the case of Lanco Tanjore Power Co. Ltd. (supra) wherein the Tribunal discussed as under:- 7. Construction of residential complex activity was carried out by the assessee for M/s. Lanco. It is submitted that such residential units were constructed for use as quarters of the employees of M/s. Lanco. It is evident from the facts of the case that M/s.Lanco has engaged the assessee with the specific purpose of construction of such residential units which are meant for personal use of the employees of M/s. Lanco. We extract belo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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