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TMI Blog2024 (9) TMI 923X X X X Extracts X X X X X X X X Extracts X X X X ..... Construction of Residential project as well as Commercial project. The issue as to whether a builder / promoter / developer is liable to pay service tax for construction of residential complexes for the period prior to 01.07.2010 is settled by the decision in the case of M/S KRISHNA HOMES VERSUS CCE, BHOPAL AND CCE, BHOPAL VERSUS M/S RAJ HOMES [ 014 (3) TMI 694 - CESTAT AHMEDABAD ]. This Tribunal has followed the decision in the case of Vijay Shanthi Builders Ltd. Vs. Commissioner of Service Tax [ 2017 (8) TMI 519 - CESTAT CHENNAI] and set aside the demand. In the present case, it is very much clear that the appellant has carried out the construction services as a builder since the undivided share was also sold and thereafter constructions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. - HON BLE MS. SULEKHA BEEVI C.S., MEMBER (JUDICIAL) And HON BLE MR. VASA SESHAGIRI RAO, MEMBER (TECHNICAL) For the Appellant : Mr. J. Shankar Raman, Advocate For the Respondent : Mr. M. Selvakumar, Authorised Representative ORDER Order :- Per Ms. Sulekha Beevi C.S. Brief facts are that the appellant is a partnership firm engaged in activities of Construction of Residential and Commercial Complexes. They are registered with the Service Tax Department. Based on intelligence that the appellant has not discharged appropriate service tax on the construction services provided by them a Show Cause Notice dated 20.04.2012 was issued for the period from October 2006 to March 2011 proposing to demand the service tax under Construction of Residen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore there cannot be any demand for the completed projects. The appellant relied upon the judgement of Hon'ble Guwahati High Court in the case of Magnus Construction Pvt. Ltd. Vs. UOI [2008 (11) STR 225] disputing the demand. The appellant also contended that in some of the projects each block contained less than 12 dwelling units and on this ground also contested the demand. For the sake of brevity, the entire reply is not repeated here. 2.3 The Commissioner vide Order-in-Original No. 42/2014-ST (C) (Chennai) dated 16.05.2014 confirmed a demand of Rs.1,39,72,835/- after allowing cum tax benefit and imposed equal penalty in addition to a penalty of Rs.10,000/- under Section 77 of the Finance Act, 1994. 2.4 A perusal of the agreeme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax [2023 (10) Centax 170 (Tri.-Mad.)] which has been upheld by the Hon'ble Supreme Court in [(2023) 10 Centax 171 (SC)]. The Ld. Counsel prayed that the appeal may be allowed. 3.1 The Ld. Authorised Representative Shri M. Selvakumar appeared and argued for the Department. Annexure to the Show Cause Notice was referred to by the Ld. Authorised Representative to submit that the appellant has provided construction of residential complexes as well as commercial complexes. One of the contentions raised by the appellant is that the units are less than 12 and therefore would not come within the definition of Residential Complex. The said argument was countered by the Ld. Authorised Representative by referring to paras 18.6 to 18.8 of the im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of residential complexes for the period prior to 01.07.2010 is settled by the decision in the case of Krishna Homes Vs. Commissioner of Central Excise [2014 (34) STR 881 (Tri.-Del.)]. This Tribunal has followed the decision in the case of Vijay Shanthi Builders Ltd. Vs. Commissioner of Service Tax [2018 (9) GSTL 257 (Tri.-Chennai)] and set aside the demand. 6. In the present case, it is very much clear from the discussions made in the 18.11 of the impugned order that the appellant has carried out the construction services as a builder since the undivided share was also sold and thereafter constructions carried out. They have also carried out constructions for the landowner in exchange of the land value. All these would show that the app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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