TaxTMI 
TaxTMI 
2018 (11) TMI 164
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....rvice tax department. He sold undivided portion of land along with semi constructed apartment by executing sale deeds and entering into construction agreement with the buyers. During audit of the appellant's accounts, officers observed that appellant has received an amount of Rs. 2,29,32,901/- towards construction of residential complex for the period April, 2008 to September, 2008 on which they had not discharged the service tax. After availing 67% abatement on the total value in terms of Notification No. 01/2006-ST dated 01.03.2006, the appellant worked out the service tax liability as Rs. 9,35,391/- and paid the same along with interest. Thereafter, a show cause notice was issued by the lower authority demanding the aforesaid amount of s....
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....n view of the Apex Court judgment in the case of M/s. Larsen & Toubro Limited and Others v. State of Karnataka & Others (supra), the agreements entered into by a builder/promoter/developer with prospective buyers for construction of residential units in a residential complex against payments being made by the prospective buyers in instalments during construction and in terms of which the possession of the residential unit, is to be handed over to the customers on completion of the residential complex and full payment having been made, are to be treated as works contracts, it has to be held that during the period of dispute, there was no intention of the Government to tax the activity in terms of such contracts a builder/developer with prosp....
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....ce rendered by the builder to himself; that the explanation expands the scope of the taxable service, provided by builders to buyers pursuant to an intended sale of immovable property before, during or after the construction and therefore the provision is expansive of the existing intent and not clarificatory of the same; and is consequently prospective." 7. He further relied in the case law of Vinayaka Homes [2016 (43) STR 252 (Tri-Bang)] (wherein one of us (M.V. Ravindran) was a member) in which it was held as follows: "4.1 The appellants were rendering 'construction of complex service' as they were designing, planning, developing and clearing site on their own land for construction activities for buyers/clients and were not doing a....
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....ore, any service provided by such seller in connection with the construction of residential complex till the execution of such sale deed would be in the nature of 'self-service' and consequently would not attract service tax. Further, if the ultimate owner enters into a contract for construction of a residential complex with a promoter / builder / developer, who himself provides service of design, planning and construction; and after such construction the ultimate owner receives such property for his personal use, then such activity would not be subjected to service tax, because this case would fall under the exclusion provided in the definition of 'residential complex'. However, in both these situations, if services of any person like cont....