2018 (11) TMI 1981 - SCH - Service Tax

Supreme Court Upholds Service Tax on Villas Including Developmental Rights Value Under Joint Development Agreements

The SC addressed a service tax demand on the appellant related to villas constructed under a joint development agreement with multiple landowners. The ... Construction of houses and residential premises with different land owners, in respect of one joint development agreement - Revenue has demanded service tax from appellant on the ground that it was not paid correctly on the villas which were constructed by appellant for land owner, as a part of compliance of the agreement entered with the land owners - extended period of limitation - It was held by CESTAT that 'In the case in hand, the amount attributable to the consideration received by appellant in the form of land rights from the land owner stands included in the value of villas sold to prospective customer which would mean that whatever consideration was received by the appellant in form of developmental right was considered in assessable value.' HELD THAT:- Issue notice. The Supreme Court granted condonation of delay and issued notice in the matter. The order is brief and procedural, focusing solely on allowing the delayed filing and initiating the next step by issuing notice. No substantive legal reasoning or detailed holdings are provided in this document.