Residential complex service tax: composite construction activity and a non-surviving earlier order defeated the demand.

Construction of a residential complex with 106 dwelling units was treated as falling outside the "personal use" exclusion, so the broader residential-complex definition applied. The text also notes that new questions of law affecting tax liability may be raised with leave, including an additional ground that the activity was in the nature of a works contract. For the period after 1-7-2010, the demand was described as unsustainable under construction of complex service where the Department's own quantification indicated a composite arrangement rather than service simpliciter. As the impugned orders relied substantially on an earlier order that no longer survived, the service tax and interest demands were set aside.

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Issues: Whether the demand of service tax and interest on the construction of the residential complex project was sustainable, including the appellant's plea that the activity was in the nature of works contract and that the dispute was covered by the earlier decision in the appellant's own case.

Analysis: The proceedings concerned the same project for a subsequent period, and the earlier order in the appellant's own case had already been set aside. The definition of "residential complex" excludes only construction intended for personal use as residence, and the project involving 106 dwelling units did not fall within that exclusion. The Tribunal also accepted the appellant's additional ground, holding that new questions of law affecting tax liability could be urged with leave. Further, for the post-1-7-2010 period, the demand was not sustainable under "construction of complex service" where the Department's own quantification showed a composite arrangement rather than service simpliciter. Since the impugned orders rested substantially on the earlier order that no longer survived, the demands of service tax and interest could not be upheld.

Conclusion: The service tax demand and interest were held unsustainable and were set aside in favour of the assessee.

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