2016 (3) TMI 715

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....itioner : Ms. Rinky Arora, Advocate For the Respondent : Shri Amresh Jain, Authorized Representative (DR) ORDER PER. B. RAVICHANDRAN :- This appeal is against order dated 15/10/2010 of Commissioner (Appeals), Jaipur. The appellants are registered with the Department for providing construction service. Proceedings were initiated against them for non-payment of service tax for the period....

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....appeal. Aggrieved, the appellant is before us in appeal. 2. The learned Counsel for the appellant submitted that CBEC vide Circular dated 29/1/2009 clarified that the initial agreement between the promoters and the ultimate owner is in the nature of agreement to sale. Property gets transferred to the owner only after the completion of the construction and on full payment of the consideration. A....

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....ner can be equated to selling of property when there is agreement to sell and the land owner becomes prospective buyers. The learned Commissioner (Appeals) quoted the above-mentioned Circular of the CBEC and found it not applicable to the present case of the appellant as appellant was engaged in construction of commercial building, whereas the Circular is relating to construction of residential un....

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....29/1/2009 and the explanation inserted in Section 65 (105) (zzq) through Finance Act, 2010. It was concluded that mere agreement to sale does not create any interest in the property and no service was provided to the buyer and service, if any, will be only to the self. In the present case from the nature of activity and agreement as mentioned in the impugned order it is apparent that the 50% share....