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of <h1>Tribunal rules in favor: No service tax on pre-2010 property sales</h1> <h3>M/s. Messrs Grishma Developers Versus C.C.E & S.T., -Rajkot</h3> M/s. Messrs Grishma Developers Versus C.C.E & S.T., -Rajkot - TMI Issues involved:Whether service tax is leviable on services under Commercial or Industrial Construction when the appellant receives advance in respect of property sale prior to 01.07.2010.Analysis:The issue in the present case revolves around the liability of service tax on services related to Commercial or Industrial Construction when the appellant receives advances for property sales before 01.07.2010. The appellant argues that as per the explanation in Clause zzq of Section 65(105), amounts received before this date are not taxable under Commercial or Industrial Construction. The appellant cites various judgments to support this argument, including U.B. Construction (P) Ltd., R.F. Properties & Trading Ltd., and Krishna Homes. On the other hand, the Revenue representative relies on judgments like G.S. Promoters Vs. Union of India and N. Bala Baskar Vs. Union of India to support the opposite view.Upon careful consideration of the submissions and perusal of records, the Tribunal notes that the amount against the sale of a Commercial complex was received by the appellant during the period 2005-2006 to 2007-2008. The Tribunal refers to the explanation in Clause (zzq) which clarifies that even amounts received before, during, or after construction are liable to service tax only after 01.07.2010. In a previous case, M/s Grishma Enterprise, the Tribunal had already decided a similar issue, setting a precedent. The Tribunal quotes the order from the previous case to support its decision, emphasizing that prior to 01.07.2010, there was no intention to tax such contracts related to construction activities.Considering the statutory provision effective from 01.07.2010 and the precedent set by the previous case, the Tribunal concludes that the impugned order is not sustainable. Therefore, the Tribunal sets aside the impugned order and allows the appeal, ruling in favor of the appellant. The period involved in the demand for service tax in this case is from 2004-2005 to 2007-2008, which predates the amendment in the Finance Act, 2010. Consequently, the demand for service tax cannot be upheld, and the appeal is allowed.
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