CESTAT Rules Service Tax Demand Partially Invalid on CRCS, Lease Transactions, and Sovereign Water Supply Under Relevant Abatement Notification

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....The CESTAT partially allowed the appeal, setting aside the service tax demand related to Construction of Residential Complex Service (CRCS) on the grounds that the appellant complied with conditions under the relevant abatement notification and reversed the availed CENVAT credit. The Tribunal held that the transaction involving transfer of development rights and lump sum premium for commercial/vacant land amounted to a lease akin to sale, thus not taxable as renting of immovable property. Interest received on deferred payments was held to be penal and not includable in taxable value. Supply of water by the appellant, a government authority, was determined to be a sovereign function and not subject to service tax. Consequently, except for th.........