2026 (1) TMI 1525

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....lty under section 76, 77 & 78 of the Finance Act, 1994 (hereinafter referred to as the Act). 2. The brief facts are that the appellants are engaged in construction and sale of residential houses for which they enter into various agreements with prospective buyers. The appellants were paying tax regularly till 31.03.2008. However, they stopped collecting and paying service tax w.e.f. 01.04.2008, keeping in view certain clarification issued by CBEC vide Circular No.108/2/2009-ST dt.29.01.2009. 3. Learned CA for the appellant has mainly contended that insofar as leviability of service tax for the period prior to 01.07.2010 is concerned, the matter is no longer res integra, in view of catena of judgments including the following judgments.....

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....receipts are not taxable and therefore, liable to be excluded from the taxable value in terms of Rule 5(2) of Service Tax (Determination of Value) Rules, 2006 (hereinafter referred to as the Rules). He has relied on the following judgments in support of this contention. a) Alpine Estates [Final Order No.A/30359/2023 dt.18.09.2023 CESTAT Hyderabad] b) ICC Reality & Others Vs CCE [2013 (32) STR 427 (Tri-Mumbai)] c) Karnataka Trade Promotion Organisation Vs CST [2016-TIOL-1783CESTAT Bang] 6. He has further submitted that while providing the said service the value included both service and materials and therefore, in case any liability is held to be sustainable, the demand needs to be requantified in terms of Rule ....

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....in which material portion was also involved and therefore, it would be appropriately covered under the category of WCS. Therefore, following catena of judgments, we find that no service tax can be levied for the period prior to 01.07.2010. 10. Insofar as service tax liability beyond 01.07.2010, we find that the appellants have submitted to the adjudicating authority that they, inter alia, first sell the undivided portion of land along with the semi-constructed flat on which applicable stamp duty is also paid. Further, as provided in sale agreement itself, they enter into construction/completion agreement with each of such customers for construction/finishing of the flat. We also note that there is force in the argument that since their a....