Just a moment...

Report
FeedbackReport
Bars
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
TMI Blog
Home / RSS

2014 (1) TMI 402

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....udit realised that the assessee was collecting money from prospective buyers of constructions made on its own property; that the assessee had collected Rs. 15,02,18, 189/- during the period 16-6-2005 to 31-3-2006 from buyers; and that on this amount was required to remit Service Tax for having provided "construction of complex" service, defined under Section 65(30a) read with Section 65(91a) of the Act. Proceedings were triggered by the issuance of the Show Cause Notice dated 24-11-2006. The assessee remitted tax on the value of Rs. 8,26,20,004/- after availing abatement of the cost of their land. Eventually, the adjudication order determined service liability of Rs. 22,75,355/-, invoking the extended period of limitation besides interest u....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n would not arise and no tax would be leviable. Another appellate decision of the Commissioner dated 7-4-2008 in the case of M/s. Skynet Builders (P) Ltd. and a decision of the High Court of Gauhati in Magus Construction Pvt. Ltd. - 2008-TIOL-321-SC-GUW-ST = 2008 (11) S.T.R. 225 (Gau.) was also relied upon by the appellate authority. 4. In support of its appeal, ld. DR placed reliance on the decision of Punjab & Haryana High Court in G.S. Promoters v. Union of India - 2011 (21) S.T.R. 100 (P & H). The writ petition was filed contending that the levy of Service Tax for provision of construction of complex service, by reference to the explanation appended to Section 65(zzzh) of the Act, with effect from 1-7-2010 by Finance Act, 2010 and....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o a buyer where there is an intended sale between the parties whether before, during or after construction; that the 'Explanation' was specifically legislated upon to expand the concept of taxable service; that prior to the explanation, the view taken was that since a mere agreement to sell does not create any interest in the property and the title to the property continues to remain with the builder, no service was provided to the buyer; that the service, if any, would be in the nature of a service rendered by the builder to himself; that the explanation expands the scope of the taxable service, provided by builders to buyers pursuant to an intended sale of immovable property before, during or after the construction and therefore the provi....