2024 (3) TMI 563

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....lant have sold unfinished units to prospective buyers by entering into agreements as follows: - "sale deed for undivided portion of land together with semi finished flat. The amount of sale consideration includes the cost of construction of the unfinished unit along with the sale of undivided portion of land. Sale deed is registered on payment of appropriate stamp duty. The VAT liability on the deemed sale of material component under the state act is also discharged". 2. Another agreement is entered into with the buyer of the unfinished flat/unit for undertaking or completing the construction. 3. It appeared to Revenue that although Appellant is registered with the department but they are not discharging service tax liability properly ....

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....mounts received during the period January 2010 to December 2010. The gross amount received appears to be Rs. 11,65,14,336/- on which Service Tax was demanded Rs.48,00,391/-. Similar show cause notice was issued for the period January 2011 to December 2011 on the gross amount received Rs.11,36,37,141 demanding service tax of Rs. 46,81,850/-, with proposal to appropriate service tax already deposited Rs.5,98,671/-. The relied upon documents in the Show Cause Notice are - * Show Cause Notice(1) dated 23.04.2011 - Statement submitted by M/s Greenwood Estates and received on 22.04.2011. * Show Cause Notice(2) dated 24.04.2012 - Statement submitted by M/s Greenwood Estates and received in this office on 08.02.2012. 5. This is the 2nd round o....

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....se of the customer and therefore not liable to service tax. The construction for personal use of the customers/individual falls within the ambit of exclusion clause under Section 65(91a), which categorically states that personal use includes permitting the complex/unit for use as residence by another person on rent or without consideration. Hence no service tax is chargeable on the consideration received under the agreement of construction for completing the house/unit which have been sold vide sale deed. Appellant relies on the precedent ruling of this Tribunal in Modi Ventures Vs CCT & GST Final Order No. 30882/2020 (Hyderabad Bench). This Tribunal observed under similar circumstances, that there is no agreement for completion of the enti....

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....en the Appellant and the buyer for the residential unit. However the adjudicating authority have erred in confirming the demand including on the sale consideration stating that under the composition scheme, does not exclude the value of sale deed. The impugned order is also beyond the scope of the show cause notice. This is also confirmed as per the observation in the Order-in-Original dated 31.08.2012 wherein para 17 it is observed - no service tax have been demanded on the sale deed value in light of Board circular dated 29.01.2009. After execution of sale deed, they have entered into an agreement with the customer for completion of the said flat and the service tax demand is confined to this agreement. While confirming the demand in the ....