2023 (10) TMI 429

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....along with penalty. 2. The brief facts are that the Appellant is a developer and entered into 2 Joint Development Agreements with 2 separate parties (land owners) viz., Amrutha Estates and Ranga Reddy & Sons, for the development of residential complex at Begumpet and Miyapur. The land owners were entitled to 45% and 42.11% of the built up area respectively, as a consideration for land given up by them. The Contracts entered upon by the Appellant are a composite contracts involving supply of material and rendering of services. 3. The Department issued SCN No. C.No.IV/16/289/2009-ST dt.22.10.2010 proposing to levy service tax under 'Construction of Residential Complex service' invoking extended period of limitation. The Department proposed ....

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....ovider and accordingly, the service tax has been rightly imposed. 6. Assailing the Impugned Order, learned Counsel for the Appellant, inter alia, urges that in the facts of the present case, there is no service providerservice- recipient relationship, as the land belonging to the land owner, having been jointly developed by the parties, agreeing to share the constructed area in agreed proportion. Further, in view of the Board Circular No. 108/2009 read with Circular No. 151/2012, it has been clarified that builder/developer is not liable to pay service tax for their activities in respect of construction of residential complex prior to 01.07.2010. The Finance Act, 2010 for the first time brought developers into the ambit of service tax w.e.....