TaxTMI 
TaxTMI 
2026 (6) TMI 57
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....in the show cause notice dated 14.9.2011 [SCN]. The proposals were initially confirmed by the Commissioner by SCN dated 13.12.2012 assailing which the appellant had filed Service Tax Appeal No. 56104 of 2013 and this Tribunal, by Final Order No. 56646 of 2017 dated 14.9.2017 remanded the matter to the Commissioner with a direction to decide the matter keeping in view the decision of the Supreme Court in Larsen & Toubro Ltd. [2015 (39) S.T.R. 913 (S.C.)] as well as regarding factual details of construction of residential complex with specific reference to availability of common facilities within the approved layout, in terms of statutory definition to the work executed by the appellant. The impugned order has been passed by the Commissioner ....
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....orised representative for the Revenue prayed that the complete definition of residential complex under the Act may be considered to decide this appeal. 6. We have considered the submissions advanced by both sides. We proceed to examine the relevant portion of Macro Marvel and the definition of residential complex under the Finance Act. 7. It was decided in Macro Marvel that for something to be a residential complex, each individual building within the complex should have at least 12 units and if individual houses are built as a part of the layout, the total complex would not fall within the definition of residential complex. Relevant portion of Macro Marvel is reproduced below: "2. The appeal is against demand of service tax ....
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....etion and finishing services in relation to residential complex such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services; or (c) repair, alteration, renovation or restoration of, or similar services in relation to, residential complex. 'Residential complex' stands defined under clause (91a) of Section 65 of the Act, which is as follows :- "(91a) "residential complex" means any complex comprising of - (i) a building or buildings, having more than twelve residential units; (ii) a common area; and (iii) ....
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....994 as amended. 'According to this Explanation, 'construction of a new residential complex or a part thereof' stands included within the scope of 'works contract'. But, here again, the definition of "residential complex" given under Section 65(91a) of the Act has to be looked at. By no stretch of imagination can it be said that individual residential units were intended to be considered as a 'residential complex or a part thereof'. These observations of ours with reference to 'works contract' have been occasioned by certain specific grounds of this appeal and the same are not intended to be a binding precedent for the future. (emphasis supplied) 8. It is evident from the above, that the finding that individual houses do not qualify as....
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.... means a single house or a single apartment. The finding in Macro Marvel that the law makers did not want individual residential houses to be subject to levy of service tax is contrary to the explicit explanation in the definition itself which was inserted to remove any doubts. As per the definition, "residential complex" means any complex comprising of - "a building or buildings, having more than twelve residential units' with some common facilities. Individual houses are also according to the explanation, residential units. Evidently no single building can have 12 individual houses, it can have 12 residential apartments. If there are 12 or more individual houses, they will be 12 or more separate buildings and if they all have some common ....