Construction transaction classification under service tax circular led to remand for fresh consideration after precedent review.

The dispute concerned whether a real estate transaction fell within paragraph 3 of Circular No. 108/2/2009-ST, where the appellants asserted that they acquired the land, undertook construction, and transferred residential units only after completion. The Tribunal noted the cited earlier decision and held that the circular and precedent required the matter to be reconsidered by the original authority. The impugned order was set aside and the matter was remanded for fresh decision after affording a reasonable opportunity of hearing.

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Issues: Whether the impugned order should be set aside and the matter remanded for fresh decision in light of the Board circular and the cited Tribunal decision.

Analysis: The appellants claimed that the land was acquired by them, construction was undertaken by them, and the residential units were transferred to customers only after completion of construction, bringing the case within paragraph 3 of Circular No. 108/2/2009-ST dated 29.01.2009. The Tribunal also noted the earlier decision cited before it and considered that the circular and precedent required reconsideration of the matter by the original authority.

Conclusion: The impugned order was set aside and the matter was remanded to the original authority for fresh decision after granting a reasonable opportunity of hearing.

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