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TMI Blog2024 (5) TMI 1448X X X X Extracts X X X X X X X X Extracts X X X X ..... ified that a Promoter/Developer/Builder is not liable to pay service tax for Construction of Residential Complex Services prior to 01.07.2010. The Tribunal in the case of M/s. Krishna Homes Vs. Commissioner of Central Excise [ 2014 (3) TMI 694 - CESTAT AHMEDABAD] held that the demand of service tax against a Promoter/Builder/Developer cannot sustain for the period prior to 01.07.2010. Moreover, in the present case the contracts are composite in nature. The demand raised under Commercial or Industrial Construction or Construction of Residential Complex Services cannot sustain. The Tribunal in the case of Real Value Promoters Pvt Ltd [ 2018 (9) TMI 1149 - CESTAT CHENNAI] had held that the demand of service tax for composite contracts can only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant is a developer, engaged in the development of residential projects. The appellant entered into a Joint Development Agreement for Construction and Development of Residential Projects, which is shared in the ratio of 70:30 with the land owners. These contracts are not only for construction but for promotion and development of residential projects. For the period prior to 01.07.2010, the Board Circular vide No. 108/2/2009 dated 29.01.2009, has clarified that a Promoter/Developer/Builder is not liable to pay service tax for construction of residential projects. The demand under Residential Complex Services therefore cannot sustain. 4. It is submitted that the services rendered by the appellant, being composite contracts, involving both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orpn. The assessee are to pay sale consideration to M/s. City Lando Corpn and others by way of 30% of the Constructed Area and 30% of the UDs of the land along with Rs. 35 lakhs. The assessee get the balance 70% of the UDs of land and 70% of the constructed area and enjoy the sale proceeds for the same as their share from the project. 11. From the foregoing, it appears that the services rendered by the assessee regarding construction of 120 flats with common amenities like lift, club house, gymnasium, mini theatre, children s play area, etc, for the land owners M/s. City Lando Corpn and 7 others, as a builder and subsequently entering into construction agreements with various customers as a builder, is classifiable under Construction of Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idential complex or a part thereof or (b) completion of finishing services in relation to residential complex such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction 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 . The expression residential complex was defined in Section 65(91a) of the Finance Act, 1994 as 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 par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he contractor shall be liable to pay Service Tax on the gross amount charged for the construction service provided to the builder/promoter/developer under construction of complex service falling under Section 65(105)(zzzh) of the Finance Act, 1994 and that if no person is engaged by the builder, promoter, developer for construction work who undertakes construction work on his own without engaging the services of any other person than in such cases, in absence of the service provider and service recipient relationship, the question of providing taxable service to any person by any other person does not arise. W.e.f. 1-7-2010 an explanation was added to Section 65(105)(zzzh) which was as under :- Explanation. - For the purposes of this sub-cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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