2024 (7) TMI 865

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....hat the appellant has rendered such construction services without obtaining registration and is not paying appropriate service tax, the officers of the Service Tax Commissionerate, initiated investigations. 1.2 The appellant vide Letter dated 11.11.2009 intimated the Department that they have completed one commercial project at T. Nagar for their own use and had sold the same after obtaining Completion Certificate on 02.05.2005. In February 2008 onwards they had entered into the agreement to build residential project at Mogappair West. They had not collected service tax from their customers for the said project. The appellant furnished details of the amount collected for the period from February 2008 to March 2009 in respect of this second....

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..... 2.1 The Ld. Counsel Shri R. Subramanian appeared and argued for the appellant. It is submitted that the period involved is from April 2005 to December 2009. In respect of demand of service tax on the commercial project at T. Nagar, the Ld. Counsel submitted that the Completion Certificate was issued to the appellant on 05.02.2005. The building / complex was sold by the appellant after obtaining Completion Certificate and therefore it is a sale of immovable property. There cannot be a service to oneself. 2.2 Further, the demand raised for the project at T. Nagar is under Construction of Complex Services and the demand raised for the Mogappair project is under Construction of Residential Complex Services. The demand is not under Works Con....

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....nt. The findings in the impugned order were reiterated. 4. Heard both sides. 5. The issue that arises for consideration is whether the demand of service tax confirmed by the Adjudicating Authority under Commercial Construction Services for T. Nagar project as well as Construction of Residential Complex Services for Mogappair project is sustainable or not. 6. The period involved is from April 2005 to December 2009. On perusal of the joint venture agreement as well as other agreements, it can be seen that the appellant has been entrusted with the work of construction of flats / complexes. The nature of such composite contracts involve both supply of materials as well as rendition of services. The Tribunal in the case of Real Value Promoter....