TaxTMI 
TaxTMI 
2018 (5) TMI 405
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....poration Ltd. (TNPHCL) which is a Government of Tamil Nadu company wherein 100% of the shares are held by Tamil Nadu Government for construction of police quarters. A show cause notice was issued to them proposing to demand service tax under the category of 'Construction of Residential Complex Service' for the period from 16.6.2005 to 31.12.2007. After due process of law, the original authority confirmed the demand, interest and also imposed penalties. Hence these appeals. 3. On behalf of the appellant, ld. counsel Ms. Nandita S.Das submitted that the period involved includes prior to 1.6.2007 as well as after the said date. The issue whether works contract services are liable to levy of service tax prior to 1.6.2007 is settled by the deci....
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....motive involved in these transactions and there is no renting or letting of these quarters for commercial purposes. The land on which the building is built up belongs to the Government of Tamil Nadu and the ownership of the entire property vests with the Government. That therefore, applying the decision in Nithesh Estates (supra), levy of service tax cannot sustain. 4. The ld. AR Shri R.Subramaniam reiterated the findings in the impugned order. 5. Heard both sides. 6. The issue is whether construction of quarters for police personnel would fall within the taxable service of construction of complex service under section 65(30a) r/w section 65(105)(zzzh) of Finance Act, 1994. The details of the period involved in these appeal is furnished ....
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....8223; means any complex comprising of - (i) a building or buildings, having more than twelve residential units; (ii) a common area; and (iii) any one or more of facilities or services such as park, lift, parking space, community hall, common water supply or effluent treatment system, located within a premises and the layout of such premises is approved by an authority under any law for the time being in force, but does not include a complex which is constructed by a person directly engaging any other person for designing or planning of the layout, and the construction of such complex is intended for personal use as residence by such person. Explanation. - For the removal of doubts, it is hereby declared that for the purposes of ....
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....bdquo;personal use‟ in the explanation. The next question that arises is whether it gets excluded under the circumstances. The circular issued by C.B.E.&C. on 24-5-2010 relied upon by the learned counsel is relavant. Para 3 of this circular which is relevant is reproduced below : "3. As per the information provided in your letter and during discussions, the Ministry of Urban Development (GOI) has directly engaged the NBCC for constructing residential complex for Central Government officers. Further, the residential complexes so built are intended for the personal use of the GOI which includes promoting the use of complex as residence by other persons (i.e. the Government officers or the Ministers). As such the GOI is the service re....
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.... under:- "7. Construction of residential complex activity was carried out by the assessee for M/s. Lanco. It is submitted that such residential units were constructed for use as quarters of the employees of M/s. Lanco. It is evident from the facts of the case that M/s.Lanco has engaged the assessee with the specific purpose of construction of such residential units which are meant for personal use of the employees of M/s. Lanco. We extract below the statutory definition of section 65(91a) of the Finance Act, 1994:- "Residential complex" means any complex comprising of - (i) a building or buildings, having more than twelve residential units; (ii) a common area; and (iii) any one or more of facilities or services such as park, l....