2021 (8) TMI 796

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....e case are that the appellant is engaged in construction of complex services and is registered with the Central Excise department as service provider under the category of construction of complex services. The appellant constructed more than 12 apartments in a common area at Zirakpur-Ambala Road, Zirakpur  (Punjab) under the name "Silver Heights, Silver Themes and Silver Green. The appellant is engaged in selling of flats to the allottees/customers construed by self or through contractor engaged by it on land owned by it. The appellant has also entered into agreement with various allottees/customers and advance receipt has been issued and after completion of sale deeds were executed handed over the possession of flats to the prospectiv....

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....rs is of seller and buyer. He also relied on the CBEC‟s Circular No.108/2 of 2009-ST dated 29.1.2009 which explained that till the time the sale deed is not executed, it is the builders who will be regarded as the owners and not the allottees. Since till completion of construction and execution of sale deed, the ownership remains with the builder, the construction of residential complex would be in nature of self service and it cannot be said that the appellant is the service provider and doing construction on behalf of the allottees. 5. It is his submission that in view of the circular, no service tax is payable by the appellant as they executed sale deed and the relationship between buyer/allottee or customer is buyer and seller.....

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....o.108/2 of 2009-ST dated 29.1.2009 and hence is not chargeable to service tax. 9. This issue has been examined in detail by this Tribunal in the case of Skynet Builders, Developers, Colonizer (supra) wherein this Tribunal clarified. Further, the same view was taken by this Tribunal in the case of Bairathi Developers Pvt.Ltd.(supra). Further, in the case of Indo Global Estates vs. CCE, Chandigarh- 2014 (46) taxmann.com.254 (New Delhi-CESTAT), this Tribunal held that "when construction of residential complex is for sale of flats and same is ultimately sold to customer under agreement, it cannot be held that there were any service being provided by builders to their customer, even if, a part amount of cost of flats is being received in adva....