TaxTMI 
TaxTMI 
2013 (7) TMI 44
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....ity of Rs.33,74,121/-, interest and penalties under Section 75 to 78 of the Finance Act, 1994 as stipulated in the order impugned. 3. The relevant facts fall within a narrow compass. The assessee undertook execution of a project known as World Trade Park (WTP), a commercial complex, having acquired the land from the Jaipur Development Authority, Jaipur. According to the statement of the assessee's representative recorded under Section 14 of Central Excise Act, 1944, the assessee received Rs. 9,35,58,510/- as application money/advance from persons desirous of purchasing space/shop/office in the proposed WTP complex; the advance to be adjusted at the time of sale of the agreed space/shop etc. to the buyer. Advances were received during the....
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....er of the property (on which the construction was put up), was a service provided "to any other person" ( the prospective buyers). Instead of focusing on this singular issue, the ld. adjudicating authority digressed to areas not wholly relevant and considered whether the expression 'in relation to' had a narrow or an expansive connotation. 6. Paragraphs 16.04 to 16.08 of the adjudication order set out the relevant analyses and the conclusion that the expression 'in relation to' has wide import and therefore activities in relation to construction would constitute the taxable service of commercial or industrial construction. There can be no quarrel with the assumption that the activity of the assessee constitutes activity in relation to co....
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....rson authorized by the builder before grant of completion certificate by the authority competent to issue such certificate under any law for the time being in force shall be deemed to be service provided by the builder to the buyer. 8. On true and fair construction of provisions of Section 65(105)(zzq) read in the light of the Explanation, it is clear that construction of a new building which is intended for sale, wholly or partly, by a builder or any person authorized by the builder before, during or after construction, where no sum is received from or on behalf of the prospective buyer by the builder or the person authorized by the builder, before grant of a completion certificate by an authority competent to issue such certificate und....
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.... the fold of service tax construction services provided by builders to buyers. 10. The Bombay High Court explained that Explanations to statutory provisions belong to different genres. Sometime these may be clarificatory in nature, clarifying an existing legislative intent or could be expansive, by adding to the existing meaning. The High Court pointed out that there was no constitutional fetter to clarifying the meaning of an existing legislative provision by introducing a clarificatory provision ex abundanti cautella or to explain the ambit and purview of an existing provision; nor is there a constitutional fetter to add an explanation, expansive of the current provision; the trajectory of a legislative introduction must however be ide....