2015 (11) TMI 1143 - AT - Service Tax

Appellate Tribunal rules construction of independent houses not taxable as residential complex service

The Appellate Tribunal CESTAT NEW DELHI ruled in favor of the appellant in a service tax liability case related to construction of complex services. The ... Construction of complex service under Section 65(91a) of the Finance Act, 1994 - residential complex service - construction of independent houses - service tax liability - binding Tribunal precedentConstruction of independent houses - residential complex service - construction of complex service under Section 65(91a) of the Finance Act, 1994 - Whether the appellant's construction of independent houses for Rajasthan Housing Board and other housing development organisations attracted service tax as 'construction of complex service' defined in Section 65(91a) of the Finance Act, 1994. - HELD THAT: - The Tribunal applied its earlier Division Bench decision in Macro Marvel Projects Ltd. v. CST, which held that construction of independent houses, even if more than twelve in number, does not constitute a 'residential complex' falling within the definition of 'construction of complex service' under Section 65(91a) of the Finance Act, 1994. On the admitted facts that the appellant constructed independent houses in a specified area for public housing authorities, the adjudication treating such activity as construction of complex service was untenable in view of the cited Tribunal precedent. There was no contrary factual or legal finding recorded to distinguish the present case from Macro Marvel Projects Ltd. [Paras 2, 3]The adjudication confirming service tax liability on the ground of construction of complex service is quashed; the appeal is allowed and there shall be no order as to costs.Final Conclusion: The Tribunal allowed the appeal and set aside the adjudication order confirming service tax on the construction of independent houses, following the Tribunal's earlier decision that such construction does not amount to 'residential complex' service under Section 65(91a) of the Finance Act, 1994. The Appellate Tribunal CESTAT NEW DELHI ruled in favor of the appellant in a service tax liability case related to construction of complex services. The order confirming the liability was quashed based on the Tribunal's decision that construction of independent houses does not fall under the definition of residential complex service. The appeal was allowed with no costs.