2015 (8) TMI 1249

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....rges for the interim period till the society is formed, as per the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale Management and Transfer) Act, 1963, and thereafter once the building is occupied by the flat owners, they would form a Housing Society as per Co-operative Housing Society Rules. They were collecting corpus for maintenance, etc., and the said balance of funds along with account of utilisation, are transferred to the newly formed society, in terms of Sections 5 & 6 of the said Maharashtra Ownership Flat Act, 1963 (for short). 2. For the sake of convenience, we take up the appeals together for disposal as common points of law and facts are involved. We prefer to take facts from Appeal No.ST/307/10. ....

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....r providing the taxable service of management, maintenance and repairs, for the purpose of valuation of taxable service in terms of Section 67 of the Act. Accordingly, the appellant was required to show-cause as to why the service tax and education cess for the period 16/06/2005 to 31/12/2006 amounting to Rs. 26,59,654/- along with interest not be assessed and further penalty levied under Sections 76, 77 & 78 of the Act. The appellant contested the show-cause notice by filing reply wherein it was stated that the amount is collected from the flat owners under the provisions of Maharashtra Ownership Flats (Regulation of the Promotion of Construction, sale, Management and transfer) Act, 1963. The appellant is acting merely as trustees, maintai....

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....lopers of the flats had collected similar amounts towards deposit and had incurred common expenditure on behalf of the society till the time the society is formed. It has been held that the appellant are not in the business of maintenance and repair or management of immovable property. They are collecting one time maintenance charges from their buyers to whom they have sold the flats. They are only paying on behalf of various buyers (as trustees) of flats to various authorities like, Municipal Corporation, Revenue authorities etc. and also various services providers, etc. and they are not charging anything on their own. The payments are made on cost basis and the same is debited from the deposit accounts held. The builders/developer act onl....