2008 (9) TMI 272

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....though of different applicants/appellants, they are being heard together and disposed off by a common order. 2. The necessary facts that arise for consideration are all the applicants herein are builders/contractors constructing, developing residential and commercial complex and selling them. The revenue authorities on the basis of intelligence gathered and inquiries conducted came to conclusion that the applicants herein are charging and recovering "maintenance charges as onetime maintenance from their customers to whom they have sold immovable properties". It was noticed by the lower authorities that the applicants herein collected the amounts from their customers in respect of various residential projects and showed them in their book....

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....done under the statutory obligation, the same is not an in result of any services provided by the applicants. It is his submission that there is no consideration which is received by the applicant and in fact these are the funds of the customers which are being utilized on cost to cost basis, to pay the dues of commercial taxes and other charges like water, electricity and cleaning etc. It is his submission that the amount which are received from the customers are deposited in an account as fixed deposit and the interest arising out of such deposit is utilized by the purpose of discharge of the dues as indicated above. It is his submission that when the flat owners form a society, the entire amount collected by the builder from the flat own....