9911796707
TMI Blog2023 (9) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... as already held that RUPL is not liable to be levied with service tax under the category of management, maintenance and repair service in respect of the deposits that RUPL collects from the purchasers of the units in accordance with Maharashtra Ownership of Flats Act, 1963. Further, it was also held that RUPL has paid service tax under the category of club or association service and, therefore, the said service was not required to be classified under health and fitness service. There is no merit in the grounds raised by Revenue - further, RUPL has correctly classified services under club and association service and without interfering with the service tax paid by them in respect of the said activities, the impugned order set aside. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epair service and, therefore, they were required to pay service tax on such deposits treating such deposits as consideration for providing maintenance and repair service. In addition, RUPL has also provided club facilities to the purchasers of the units. They have paid service tax under the category of membership of club services. However, it appeared to Revenue that RUPL should have classified those services under health and fitness services. Therefore, RUPL was issued with a show cause notice dated 17.04.2008 demanding service tax on maintenance and repair service and health and fitness service. Subsequent to the show cause notice dated 17.04.2008, further show cause notices were issued on 31.03.2009, 26.02.2010, 12.04.2011, 08.10.2012, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... health and fitness service, he has confirmed the demand of Rs.39,822/- and appropriated the amount of Rs.39,822/- along with interest of Rs.4,099/-. In respect of the remaining four show cause notices, the learned original authority has held that there was short payment of service tax of Rs.63,474/- on account of management, maintenance and repair service and, therefore, he has dropped the demand of Rs.91,86,954/-, Rs.47,08,951/-, Rs.78,74,930/-, Rs.12,04,038/- and Rs.18,55,607/- stating that those amounts were not short paid. The original authority imposed penalties of Rs.2,000/- and Rs.5,000/- under Section 76 of Finance Act, 1994. In respect of the demands dropped by the original authority, Revenue is in appeal and in respect of confirm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs by the original authority and the grounds are repetition of show cause notice. 4. Heard the learned AR on behalf of Revenue. Learned AR has submitted that earlier final order referred to by learned counsel for RUPL is not applicable as the matter was decided on classification of service in the said final order and that RUPL has accepted the classification of management, maintenance or repair service before the original authority. He has further submitted that a plain reading of the provisions of Maharashtra Ownership Flats Act, 1963 demonstrates that the amount which has to be collected was only for limited purpose and only when the flats were not handed over to the buyers, the demand in the present matter has been made on amounts co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion devolving on the part of the developer to discharge the function of a society of owners is ignored, there is no finding in the impugned order that the appellant renders 'management/maintenance or repair service'. Even if the appellant has collected lump-sum amounts from the owners of the units the service of providing 'management/maintenance or repair service' is procured by the appellant from organisations that possess the necessary proficiency. In these circumstances, the appellant is a recipient of the services provided by 'management, maintenance or repair' service providers. It, therefore, does not appear to be logical for the appellant to be taxed as a provider of the service on collection from the owners a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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