Independent villa construction qualifies for service tax refund where the project is not a residential complex.

Construction of an independent villa was held not to fall within the disqualifying category of a residential complex because a separate agreement covered the individual house and the local authority had sanctioned a separate plan. The objection based on common facilities such as parks and roads was rejected, as those areas had been relinquished to the Government under the relinquishment deed and were not common property of the owners. On that basis, service tax refund under Notification No. 25/2012-ST was admissible, and the rejection order was not sustainable; consequential relief followed.

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Issues: Whether service tax refund was admissible on the construction of an independent villa under Notification No. 25/2012-ST dated 20.06.2012, or whether the project was a residential complex so as to deny the exemption.

Analysis: A separate agreement existed for construction of the individual house and the local authority had sanctioned the separate plan. The conditions necessary to treat the project as a residential complex were not satisfied. The objection based on common facilities such as parks and roads was rejected because those areas had been relinquished to the Government under the relinquishment deed and were not common properties of the owners. The cited decisions supported the view that construction of an individual house in these circumstances did not fall within the disqualifying category.

Conclusion: The refund claim was admissible and the rejection order was not sustainable; the appeal was allowed with consequential relief, if any.

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