2014 (3) TMI 735

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....ial apartments. They did not charge and collect serviced tax on the activity of development and construction of apartments during the period 2006 to 2009. The properties in dispute (residential apartments) were constructed and completion certificate was obtained in 21.8.2009. Since the appellant had no clarity on liability of service tax while settling the accounts finally with the buyers of the apartments, they collected certain amount which was in the interest of protecting both the buyers and the appellant from any future exposure to service tax liability if their service falls under the category of 'works contract'; and the amounts collected were kept in a separate escrow account. Taking a view that the collection of amount and deposit ....

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.... methodology in the interest of both parties wherein a separate escrow account will be opened and all customers cheques pertaining to service tax will be deposited in this account. In case customers are not liable to pay service tax then this amount paid along with accrued interest will be returned to the apartment owners. Therefore, we will be collecting a separate cheque favouring this escrow account for the service tax amount. The claim made by the appellant that the appellant has not collected service tax but they had collected only a 'caution deposit' which was kept in separate account to be paid to the Government if held to be liable to pay or otherwise, to be returned to the party has not been considered by the Commissioner in the....

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....the Central Government. (4) The Central Excise Officer shall, after considering the representation, if any, made by the person on whom the notice is served under sub-section (3), determine the amount due from such person, not being in excess of the amount specified in the notice, and thereupon such person shall pay the amount so determined. (5) The amount paid to the credit of the Central Government under sub-section (1) or sub-section (2) or sub-sections (4), shall be adjusted against the service tax payable by the person on finalisation of assessment or any other proceeding for determination of service tax relating to the taxable service referred to in sub-section (1). (6) Where any surplus amount is left after the adjustment und....