Construction of independent houses falls outside residential complex service, so the service tax demand could not be sustained.

Construction of independent houses for a housing board or housing development organisation did not amount to "construction of residential complex service" under section 65(91a) of the Finance Act, 1994. The Tribunal applied its earlier ruling that independent houses remain outside the scope of a residential complex even where the number of units exceeds twelve. On that basis, the service tax demand was unsustainable and the adjudication order was quashed.

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Issues: Whether construction of independent houses for a housing board or housing development organisation amounts to construction of residential complex service under section 65(91a) of the Finance Act, 1994.

Analysis: The appellant had constructed independent houses in a specified area for housing bodies. A prior decision of the Tribunal had held that construction of independent houses, even if exceeding twelve in number, does not amount to construction of a residential complex within the meaning of the service tax provision. That legal position governed the present dispute.

Conclusion: The service tax demand could not be sustained and the adjudication order was quashed, resulting in allowance of the appeal.

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