https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=770133 https://www.taxtmi.com/caselaws?id=770133 Taxability - Construction of Residential Complex Services - construction activity undertaken by the appellants, involving individual houses termed as "villas" within a gated community - Real Estate Agent Services - collection of land development charges. Taxability - Construction of Residential Complex Services - construction activity undertaken by the appellants, involving individual houses termed as "villas" within a gated community - HELD THAT:- To come within the ambit of the definition of "residential complex" as defined in Section 65(91a), the complex should comprise of a building having more than twelve residential units, or the complex should comprise of buildings having more than twelve residential units. Such building or buildings having more than twelve residential units should have a common area and any one or more of the facilities stipulated therein. That the building or buildings should have more than twelve residential units, should have a common area and should have any one or more of the facilities stipulated therein are cumulative requirements. The definition also states what is excluded. From the appeal records, it is also evident from the photographs produced that these are individual houses that were constructed by both the appellants and not building or buildings having more than twelve residential units. Therefore, by virtue of these individual houses not being a building or buildings having more than twelve residential units, they do not satisfy clause (i) of Section 65 (91a) and are therefore straightaway ousted from the ambit of the definition - the appellants cannot be considered to have rendered a taxable service in relation to construction of complex as stipulated in Section 65(105) (zzzh), thereby rendering the demand made on this count in the impugned OIOs wholly unsustainable. Real Estate Agent Services - collection of land development charges - HELD THAT:- Development, construction, implementation, supervision, maintenance, marketing, acquisition or management, of real estate. It is found that in the impugned OIO, the adjudicating authority has merely cited terms of a power of attorney given by a customer to the appellant to hold that the appellant has rendered all the services as stated in the power of attorney and that they are undertaken in relation to sale of land - the SCN does not rely on any invoices specifying the nature of services that the appellant has rendered as evidence for such real estate agent services that the appellant is alleged to have rendered and only alleges that during the financial year 2010-11, the appellant has collected land development charges from their customers. Further, the annexure to the SCN indicates that the land development charges is the difference between guidance value and actual sale value and if that be so, it only indicates amounts collected towards sale of immovable property, and thus outside the ambit of levy of service tax - the demand made on the appellant in the impugned OIO on the allegation of having rendered "real estate agent services", cannot sustain. Conclusion - i) The appellants cannot be considered to have rendered a taxable service in relation to construction of complex as stipulated in Section 65(105)(zzzh), thereby rendering the demand made on this count in the impugned OIOs wholly unsustainable. ii) The demand made on the appellant in the impugned OIO on the allegation of having rendered "real estate agent services", cannot sustain. The impugned order set aside - appeal allowed. Case-Laws Service Tax Fri, 02 May 2025 00:00:00 +0530