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TMI Blog2024 (6) TMI 443X X X X Extracts X X X X X X X X Extracts X X X X ..... .2009, the demand raised against the appellant for Construction of Residential Complex Services is unsustainable. The issue as to whether a Promoter/Builder is liable to pay service tax, was considered by the Tribunal in the case of M/s.Krishna Homes Vs. Commissioner of Central Excise [ 2014 (3) TMI 694 - CESTAT AHMEDABAD] and it has held that the demand of service tax against the promoter/builder/developer cannot sustain for the period prior to 01.07.2010. The said decision was followed by the Tribunal in the case of Pragati Edifice Pvt. Ltd Vs. Commissioner of Central Excise Service Tax [ 2019 (9) TMI 792 - CESTAT HYDERABAD] wherein it was held that the demand raised under construction of residential projects against the Promoter/Builder ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the period from October 2007 to December 2009, January 2010 to September 2010 and October 2010 to September 2011 respectively were issued to the appellant proposing to demand service tax under the category Construction of Residential Complex Services , along with interest and also for imposing penalty. After due process of law, the Original Authority confirmed the demand, interest and imposed penalty. On appeal, the Commissioner (Appeals) upheld the same. Aggrieved by such order, the appellant is before the Tribunal. 3. Ld. Counsel, Shri R.Subramanian appeared and argued for the appellant. It is submitted that the appellant is a Promoter/Developer/Builder for construction of residential projects. The appellant entered into Joint Venture a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Promoter/Builder of residential projects and as per the clarification of the Board Circular vide No.108/2/2009 dated 29.01.2009, the demand raised against the appellant for Construction of Residential Complex Services is unsustainable. 8. The issue as to whether a Promoter/Builder is liable to pay service tax, was considered by the Tribunal in the case of M/s.Krishna Homes Vs. Commissioner of Central Excise 2014 (34) STR 881 (supra) and it has held that the demand of service tax against the promoter/builder/developer cannot sustain for the period prior to 01.07.2010. The relevant para of the decision of Tribunal reads as under: 8. Coming first to the question as to whether the activity of M/s. Krishna Homes and M/s. Raj Homes was taxable d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y engaging any other person for designing or planning of the layout, and the construction of such complex is intended for personal use as residence by such person . There is no dispute that the complex constructed by both the assessees in these appeals is covered by the definition of residential complex as given in Section 65(91a). There is also no dispute that both the assessees had engaged contractors for construction of the complexes. The dispute in these appeals is as to whether the assessees would be liable to pay Service Tax on the amounts charged by them from their customers with whom they had entered into agreements for construction of the residential units and whose possession was to be handed over on completion of the construction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person authorized by the builder before grant of completion certificate by the authority competent to issue such certificate under any law for the time being in force) shall be deemed to be service provided by the builder to the buyer. 9. The said decision was followed by the Tribunal in the case of Pragati Edifice Pvt. Ltd Vs. Commissioner of Central Excise Service Tax (supra) wherein it was held that the demand raised under construction of residential projects against the Promoter/Builder cannot sustain for the period prior to 01.07.2010. Apart from this, the Works Contracts are composite in nature, involving both supply of material and rendition of services, and are composite in nature. The Tribunal in the case of Real Value Promoters P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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