2026 (8) TMI 101

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....e. 2. The principal dispute relates to levy of service tax on the activity of construction and sale of residential flats undertaken by the appellant during the period April, 2008 to March 2012. The Adjudicating Authority has confirmed service tax amounting to Rs. 80,00,790/- along with interest, penalties and late fee by classifying the activity under "Construction of Residential Complex Service". 3. The appellant contend that a substantial portion of the demand pertains to the period prior to 01.07.2010, during which builders undertaking construction for prospective purchasers were not liable to service tax. It is further submitted that the flats were constructed for the personal use of the individual purchasers and consequently fall....

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....sed. 5. We have considered the rival submissions, perused the records and examined the judicial precedents. 6. The issue regarding levy of service tax on construction undertaken by builders prior to 01.07.2010 is no longer res-integra. The Hon'ble Supreme Court in the case of Larsen & Toubro Ltd., supra has categorically held that composite works contracts could not be subjected to service tax prior to introduction of the specific charging provisions relating to works contract service and that the legal position remained unsettled during the relevant period. The principle has consistently been followed by various High Courts and Tribunals in cases concerning builders and developers. 7. We further find that Hon'ble Telangana High Co....

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....tory amendments, circulars and conflicting jurisdictional pronouncements before attaining finality through subsequent judgments. Therefore, it cannot be alleged that the appellant deliberately suppressed facts with an intention to evade payment of service tax. 12. The Hon'ble Supreme Court in Pushpam Pharmaceuticals Company Vs Collector of Central Excise, Bombay [1995 (78) ELT 401 (SC)], Uniworth Textiles Ltd., Vs Commissioner [2013 (288) ELT 161 (SC)] and Padmini Products Vs Collector of Central Excise, Bangalore [1989 (43) ELT 195 (SC)] has consistently held that mere non-payment of duty or tax without deliberate suppression or wilful misstatement with intent to evade payment of service tax, is insufficient for invoking the extended pe....