2018 (6) TMI 671

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.... (91a) of clause 65 of the finance Act, 1994, rendered to their customers during the period 16.6.2005 to 30.6.2006. The lower authorities have confirmed the demands and imposed penalties. The appellate authority has dealt both the cases vide a single order Order-in-Appeal No.139/2008 dated 17.09.2008 and confirmed the demands and hence these appeals. 2. The appellants are engaged in the activity of developing of land and getting constructed thereon residential/commercial buildings for individual buyers. They purchase land and plan/lay out of the buildings and engage independent architects, civil contractors, electrical and plumbing contractors to carry on the actual work of construction and other services for buildings. After completion of....

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....ustan Aeronautics Ltd. vs. CST 2017-TIOL-3591-CESTAT- BANG 3.3. He further submitted that the developers who got buildings and complexes constructed by contractors came into service tax net from 1.7.2010 after an amendments made with insertion of 65(105)(zzzh) and (zzq). They relied upon the following judgments: (a). Mohtisham Complexes P Ltd Vs CCE2016-TIOL-1817- CESTAT-BANG (b). CCE Vs UB Construction Pvt Ltd 2013(32) STR 738 (T) and (d). Krishna Homes vs. CCE 2014 (34) STR 881 (T) (e). Trade Facility Circular No 1/2011 issued by Pune Commissionerate. Even assuming tax was payable, it was the actual person who did the construction work was liable to be taxed in view of CBEC circulars dated 1.8.2006, 23.8.2007 and 29.1.2009 whic....

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....aken by the appellants were taxable during the relevant time. The appellants contended that it has been repeatedly confirmed in the Order-in-Original that their work comes under composite contracts; they purchase land and plan/layout of the buildings and engage independent architects, civil contractors, electrical and plumbing contractors to carry on the actual work of construction and other services for buildings; After completion of the buildings, they are sold to individual buyers. Even in cases the appellants have taken advances from the prospective buyers of the flats or complexes, the work undertaken by them is composite in nature as is borne by such agreements. The appellants enter into contracts with individual buyers for sale of un....

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....isions of the Transfer of Property Act does not by itself create any interest or charge on such property. The property remains under the ownership of the seller ( in the instant case promoters/builders/developers). It is only after the completion of construction and full payment of the agreed sum that a sale deed is executed and only then the ownership of the property gets transferred to the ultimate owner. Therefore, any service provided by such seller in connection with the construction of residential complex till the execution of sale deed would be in the nature of ‟self- service‟ and consequently would not attract service tax. Further, if the ultimate owner enters in to a contract with a promoter/ builder /developer who hims....