TaxTMI 
TaxTMI 
2026 (4) TMI 863
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....aid service tax on 30% of the value of goods after claiming exemption on 70% under Notification No.12/2003-ST dated 20.06.2003, which according to Revenue, not admissible; also, the appellant has not paid service tax on the lease-rent received for renting of fit-outs, furniture etc. Accordingly, a show-cause notice dated 20.10.2011 was issued demanding differential service tax of Rs.15,76,522/- for the period April 2006 to March 2008 and Rs.81,19,457/- for the period June 2007 to March 2008 along with interest and proposal for imposition of penalty. On adjudication, the demand was confirmed with interest and penalty. Hence, the present appeal. 3.1. At the outset, the learned advocate for the appellant has submitted that the appellant are registered under various categories of service provided viz. construction of complex service, works contract service, renting of immovable property service etc. During the relevant period, they have executed construction / sale of apartment / flat agreement with the prospective buyers in the residential complexes developed by it and discharged service tax on the abated value of 33% as per the Notification No.01/2006-ST dated 01.03.2006 under the....
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.... CHENNAI iii. Pr. CGST Vs. ASF Buildcon Pvt. Ltd. [2025(3) TMI 1136 -CESTAT NEW DELHI] iv. MSPL Ltd. Vs. CCE [2023(69) GSTL 289 (Tri. Bang.)] affirmed by the Hon'ble Supreme Court - 2023(69) GST 225 (SC). v. Khivraj Techpark Pvt. Ltd. Vs. CST [2018(7) TMI 1674 - CESTAT CHENNAI] 4. Learned AR for the Revenue has reiterated the findings of the learned Commissioner. 5. Heard both sides and perused the records. 6. The issues involved in the present appeal for consideration are whether the service tax is attracted in case of construction of residential complexes by the appellant which are in the nature of 'Works Contract Service' for the period from 01.04.2006 to 31.03.2008 and applicability of service tax under the category of 'Renting of Immovable Property service' for fit-outs renting during the period 01.06.2007 to 31.03.2008. 7. As far as the first issue is concerned, we find that levy of service tax has been brought into force on 'Works Contract Service' w.e.f. 01.06.2007; therefore, demand for the period prior to 01.06.2007 under Works Contract Service cannot be sustained. This view has been taken by the Tribunal in the case of M. Srinagesh ....
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....this Court. 13. At this stage, it is required to be noted that one of the appeals being Civil Appeal No. 6523 of 2014 filed by M/s. G.D. Builders is against the decision of the Delhi High Court in the case of G.D. Builders v. Union of India reported (P). It is to be noted that the said decision of the Delhi High Court in the case of G.D. Builders (supra) has been specifically overruled by this Court in the case of Larsen and Toubro Limited (supra). The decision of the Delhi High Court in the case of G.D. Builders (supra) has been considered by this Court in the case of Larsen and Toubro Limited (supra) in paragraphs 28, 29, 30, 32, 33, 38 and 39 and ultimately, this Court opined that the decision of the Delhi High Court in the case of G.D. Builders (supra) is in fact contrary to a long line of decisions. It is further specifically observed and held that the decision of the Delhi High Court in the case of G.D. Builders (supra) is wholly incorrect in its conclusion that the Finance Act, 1994 contains both the charge and machinery for levy and assessment of service tax on indivisible works contract. It is reported that while deciding the group of matters in the case of Larsen....
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....s a service simpliciter or a works contract, if the service is rendered prior to issue of completion certificate and transfer to the buyer, it is not taxable the service 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 unless it is for personal use of the service recipient. 8. The decision of the Principal bench of the Tribunal in the case of Krishna Homes (supra) was followed by various other benches including this Bench in several cases. We find no reason to take a different view in this case. Accordingly, we hold that no service tax could be charged from the appellant in respect of the services rendered by them as works contract services for the period 01.06.2007 to 01.07.2010." 8.2. Similar view has been adopted by this Tribunal in the f....