The summary covers the classification of services as works ...

Villa construction works taxed as service, land value excluded. Balance works not finishing service. Cancellation charges not separate service.

November 29, 2024

Case Laws     Service Tax     AT

The summary covers the classification of services as works contract services or construction of residential complex service, valuation of services, inclusion of land value in construction services, redetermination of value by revenue for balance works as finishing services, demand on cancellation charges, and limitation period for issuing show cause notice. The key points are: works contract for construction of villa classified u/s 66E(b), value of land cannot be included in works contract value, balance works classified as original works u/r 2A(ii)(A) not finishing services under 2A(ii)(B), cancellation charges cannot be treated as separate service under 66E(e) when already taxed as works contract, and invoking extended period of limitation unsustainable as no suppression of facts. The impugned order and demands were set aside by the Appellate Tribunal.

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