2018 (6) TMI 926

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of "Construction of Residential Complex" service. After due process of law, the authorities below confirmed the demand along with interest against which the appellant filed appeal before the Tribunal and the matter was remanded to the adjudicating authority for denovo consideration. Pursuant of such remand, the Commissioner has passed the impugned order confirming the demand of service tax, interest as well as penalties. Aggrieved, the appellant is once again before the Tribunal. 2. On behalf of the appellant, the Ld. Counsel, Ms. S. Nandita Das submitted that the major part of the period involved is prior to 01.06.2007. That the activity of construction of residential complexes involves transfer of property is in books and in the natur....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Govt. Section 65 (91) (a) of the Finance Act, 1994 defines residential complex. The said definition excludes personal use. The Tribunal in a similar set of facts had considered the issue and set aside the demand vide Final Order in SIMA Engineering & Constructions (supra). The relevant portion is noticed as under:- "7. Undisputedly, the appellants have entered into an agreement with TNPHCL for providing services in relation to construction of residential complex. However, these are meant for use of police personnel. The said issue was considered by the Tribunal in the case of Nithesh Estates (supra), wherein the Tribunal has observed as under:-  "7.1 In this case there is no dispute and it clearly emerges that the residential co....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... officers or the Ministers). As such the GOI is the service receiver and NBCC is providing services directly to the GOI for its personal use. Therefore, as for the instant arrangement between Ministry of Urban Development and NBCC is concerned, the Service Tax is not leviable. It may, however, be pointed out that if the NBCC, being a party to a direct contract with GOI, engages a sub-contractor for carrying out the whole or part of the construction, then the sub-contractor would be liable to pay Service Tax as in that case, NBCC would be the service receiver and the construction would not be for their personal use.'' It can be seen that if the land owner enters into a contract with a promoter/builder/developer who himself provided servic....