Residential complex service tax demand remanded for fresh adjudication after review of layout and common facility facts.

Service tax on construction activity treated as residential complex service under Section 65(105)(zzzh) of the Finance Act, 1994 was found not to be finally sustainable on the existing findings. The Tribunal noted that an earlier coordinate decision had already required fresh examination in light of Supreme Court law and the relevant facts, including the approved layout and the availability of common facilities. The matter was therefore remanded to the adjudicating authority for de novo consideration after giving the appellant an opportunity to present its case.

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Issues: Whether the service tax demand on construction of residential complex services was sustainable and whether the matter required remand for fresh adjudication.

Analysis: The appeal concerned taxability of construction activities treated as residential complex service under Section 65(105)(zzzh) of the Finance Act, 1994. The Tribunal noted that an identical issue had already been considered in an earlier coordinate decision, which had held that the demand could not be sustained on the existing findings and that the matter should be examined afresh in the light of the law laid down by the Supreme Court and the relevant factual details, including the nature of the approved layout and availability of common facilities. The need for a fresh decision after giving the assessee an opportunity to place its case was therefore accepted.

Conclusion: The service tax demand was not finally sustained at this stage and the matter was remanded to the adjudicating authority for de novo consideration after hearing the appellant.

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