2023 (2) TMI 479

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....of residential complex among others and were registered with the service tax department. The appellant had entered into 'Agreement of Sale' of flats during the service tax regime prior to 30.06.2017 and had received advance payment from the proposed buyers for flats in their project namely 'Pinnacle'. The project got delayed and prior to getting of occupancy certificate in the year 2021, the booking were cancelled in respect of 7 flats on 30.12.2019. The flats were booked earlier on 15.11.2016 were cancelled under a 'Cancellation Agreement' between the parties. On cancellation, the appellant issued credit note to the buyer of the flat and also adjusted the amount of credit note' in the ledger account of the buyer. Pursuant to adjustment, th....

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....ional provisions under Section 142 of their CGST Act, the appellant applied for refund of the service tax so paid, on the cancellation (booked prior to 30.06.2017). 4. The refund claim which was filed on 30.09.2020, was adjudicated vide OIO dated 01.12.2020 and the same was rejected on contest on the ground of limitation as well as unjust enrichment. Being aggrieved the appellant carried the matter in appeal before the learned Commissioner (Appeals), who vide impugned O-I-A was pleased to observe that the refund claim is filed on 30.09.2020, whereas the demand letter/invoice was raised by the appellant on the buyer being dated 25.06.2017, the refund is time barred. He further agreed with the Adjudicating Authority holding that the unjust....

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....ax. If the investor decides to exit from the project at a later date, either before or after the issuance of completion certificate, the builder/developer would be entitled to take credit under Rule 6(3) of the Service Tax Rules, 1994 (to the extent he has refunded the original amount). If the builder/developer resells the flat before the issuance of completion certificate, again tax liability would arise" 6. It is further urged that such situation which arises in this particular type of business of developing real estate, the Board have considered and have clarified that the developer/builder is entitled to service tax credit on cancellation of bookings, wherein the builder have refunded the amount of booking including service tax to th....