TaxTMI 
TaxTMI 
2015 (1) TMI 386
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....6-07 to 2010-11, proceedings were initiated resulting in confirmation of demand for service tax of Rs. 14,00,40,596/-. The show-cause notice was issued on 18.04.2012. 2. The learned counsel on behalf of the appellant submitted that the case of the department is that: - The appellant was collecting amounts from its customer of the various residential projects towards BESCOM charges, BWSSB (GBWSP) charges and legal charges which is liable to included in the taxable value as per Section 67 of the Finance Act, 1994 read with Rule 2A of the Service Tax (Determination of Value) Rules, 2006. - The amounts collected by the appellant towards other charges forms a part of the construction cost and are liable to be included in the taxable value of ....
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....malities. These are post-construction activities and are not liable for payment of tax under Construction of Complex Service. - As per Section 6 of the Karnataka Ownership of Flats Act, 1972, a promoter who constructs a building or a block of flats has a statutory duty to pay all outgoings including water charges and electricity charges. Thus, amounts received with respect to execution of statutory obligations cannot be subject to tax under construction of residential complex service. Reliance is placed on decision in Kumar Beheray Rathi V. CCE, Pune-III, 2014 (34) S.T.R. 139 (Tri.-Mum). - Functions of an executor of the property cannot come under the purview of service tax under Construction of Complex Service. Reliance is placed prima....
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.... learned counsel, none of them discussed the issues relating to the charges on which service tax is to be paid before us. Therefore these decisions may not be relevant. As regards these amounts, we asked some specific queries to the learned counsel. The first question was whether the appellant acted as pure agent and this was not confirmed. The second question was whether these amounts were collected during the course of implementation of agreement of construction in different stages and answer was yes. Since the amounts were paid during the course of construction and were not collected on actual basis, it cannot be said that it is not part of the construction activity. Moreover provision of electricity, water and advocate fee for verifying....