Residential complex construction before the tax change was treated as non-taxable self-service, including flats allotted to landowners.

Service tax liability on pre-01.07.2010 construction of residential complexes is described as not arising where builders or developers undertook their own projects before that date. The note states that such construction was treated as self-service until execution of the sale deed and therefore not taxable. It further states that the same treatment applied to flats allotted to landowners, because that share formed part of a property-transfer arrangement rather than a taxable service. The operative point presented is that construction of residential complexes completed before 01.07.2010, including the landowners' share, was not regarded as liable to service tax.

---

---

Issues: Whether service tax was leviable on construction of residential complexes completed prior to 01.07.2010, including the landowners' share.

Analysis: The Tribunal followed its earlier view that construction of residential complexes undertaken by builders or developers before 01.07.2010 was not exigible to service tax in respect of their own projects. It relied on the consistent line of precedent and the CBEC clarification treating construction by a builder till execution of the sale deed as self-service and not taxable. The same reasoning was applied to the flats allotted to landowners, which were held to be part of an arrangement involving transfer of property and not a taxable service.

Conclusion: Service tax was held not leviable on construction of residential complexes completed prior to 01.07.2010, including the landowners' share.

---