2024 (7) TMI 927

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....t the appellant constructed a residential complex at Koyambedu, Chennai. For this purpose, appellant entered into joint development agreement with the landowners on 08.09.2004. In terms of the said agreement, the appellant agreed to undertake construction of the residential complex in the land owned by the landowners and in lieu of this, the appellant agreed to hand over 40% of the constructed area to the landowners and to retain 60% as appellant share. For construction of flats, the appellant entered into construction with individual customers. The undivided share of land was sold by the power of attorney of the land owner to the purchaser by way of execution of sale deed. The phase 1 of the project was completed in 2009 and phase 2 was su....

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....Circular No.108/2/2009 dated 29.01.2009 had clarified that a promoter/developer/ builder is not liable to pay service tax up to 30.06.2010. Part of the demand falls prior to 01.07.2010 and therefore the appellant is not liable to pay service tax for this period. The decision of the Tribunal in the case of M/s. Krishna Homes versus CCE, Bhopal 2014 (34) S.T.R. 881 (Tribunal-Delhi) was relied by the Ld. Counsel to argued that the demand against the promoter / builder / developer cannot sustain for the period prior to 01.07.2010. 6. For the period after 01.07.2010 the Ld. Counsel relied upon the decision of the Tribunal in the case of Real Value Promoters Pvt Limited vide Final Order No.42436-42438/2018 dated 18.09.2018. It is submitted that ....

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....and argued for the department. The findings in the impugned order was reiterated. 8. Heard both sides. 9. The issue to be decided is whether the appellant is liable to pay service tax under Construction of Residential Complex Services for the period 2009 to 2011. 10. For the period prior to 01.07.2010, the Ld. Counsel has relied upon the Board's Circular No.108/02/2009 dated 29.01.2009. The co-ordinate bench of the Tribunal in the case of M/s. Krishna Homes Vs. Commissioner of CE, Bhopal 2014 (34) S.T.R. 881 (Tribunal Delhi) had examined the issue as to whether a promoter/builder/developer is liable to pay service tax on construction of residential complex services prior to 01.07.2010. The Tribunal referred to the CBEC Circular No.108/2/....

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....ials as well as rendition of services. After introduction of definition of Works Contract Services, which sets out the ingredients of composite contracts, the demand of service tax for such composite contract can only be under the category of works contract services. In the present case, the demand is made under residential complex services which has been held to be in the nature of service simpliciter as per the decision of the Hon'ble Apex Court in the case of Commissioner of Central Excise & Customs, Kerala Vs. Larsen & Toubro Ltd 2015 (39) S.T.R. 913 (S.C.). 13. On perusal of the Annexure to the show cause notice, it is seen that the department has demanded the service tax on 33% of the value giving 67% abatement to the appellant while....