TaxTMI 
TaxTMI 
2024 (4) TMI 393
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Department under the category of 'Construction of Residential Complex Services', 'Works Contract Services' among other services. The appellant is in appeal against OIO dt.10.09.2015 by which service tax has been demanded of Rs.3,18,64,753/- along with equal amount of penalty under section 78 of the Act for the period 2005 to June 2009. 2. Based on the audit of the accounts of the appellant's records by the Revenue, SCN dt.23.10.2012 was issued invoking the extended period of limitation inter alia alleging as follows: (i) The appellant did not pay service tax on the flats belonging to land owner's share in respect of the venture - Aparna Towers, which has been taken up on development basis. (ii) Works Contract Service is brought under ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e agreement, it is clear that 32.5% of the constructed area will be given by the appellant - Aparna Constructions to the land owner, in lieu of the land given to them/builder towards their share. Thus, the appellants are the service providers and the land owners of the said venture are the service recipients for the taxable services rendered to the extent of flats allotted to them in the said venture. It further appeared that the appellant received no monetary consideration for rendering the services to the land owner. It was received in the form of land made available to them. In view of this position, the valuation of the service rendered to the land owner has to be determined in terms of section 67 of the Finance Act read with Rule 3 of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....09, the demand in the instant case under the head WCS is not tenable and fit to be set aside. In view of clarification vide Board Circular No. 151/2/2012-ST dt.10.02.2012, wherein it has been provided/ clarified that construction of complex services provided by the builder/developer to the land owner will not be taxable for the period prior to 01.07.2010, being self service as has been explained in Board's earlier Circular No. 108/2/2009-ST dt.29.01.2009. It is only after 01.07.2010, the construction of complex services, either under 'Construction of Complex services' or WCS are liable for service tax. 5. The aforementioned Circular dt.10.02.2012 was issued pursuant to amendment in section 65(105)(zzzh) whereby explanation was added w.e.f.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on 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 construction of a flat for personal use of the service recipient, no Service Tax is payable in view of the exclusion in the definition of residential complex service. (v) After 1-7-2010, Service Tax is chargeable under the head of 'construction of complex services' if it is service simpliciter and under 'works contract service' if it is a composite works contract." 7. Learned Counsel further urges that admittedly appellant was registered with the Service Tax department and has been filing their returns regularly and were maintaining proper books of accounts and records i....