2023 (4) TMI 432

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.... from the impugned Order-in-Original, Show Cause Notice and the pleadings advanced during the course of hearing, are that the appellant, who is a developer, had entered into a joint development agreement for the construction of residential complexes consisting of 176 units / flats, for which it had engaged a contractor. The Revenue entertained a doubt that the above construction services undertook by the appellant were liable to Service Tax under 'works contract' service ('WCS' for short) and consequently, issued a Show Cause Notice dated 04.04.2011 proposing to demand the Service Tax, interest under Section 75 and penalties under Sections 76, 77 and 78 of the Finance Act, 1994, under WCS for the above period, and proposing to appropriate t....

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....f 'residential complexes' by the builders are concerned : (i) Prior to 1-6-2007, if it is a composite works contract, no Service Tax is leviable in view of the judgment of the Hon'ble Apex Court in the case of Larsen & Toubro (supra). (ii) After 1-6-2007, it is chargeable as 'works contract' only if it is a composite contract and under 'construction of complex services' if it is a service simpliciter. (iii) However, after 1-6-2007 but prior to 1-7-2010, whether it is a service simpliciter or a works contract, if the service is rendered prior to issue of completion certificate and transfer to the customer, it is not taxable being in the nature of self service. (iv) Further, whenever the service is rendered for completion or construct....