Commissioner of Service Tax Vs Rustomjee Evershine Joint Venture (CESTAT Mumbai)
CESTAT Mumbai held that service tax on construction of complex/building is exempt when there is sale of flat subsequent to date of issue of occupancy certificate from competent authority. Accordingly, appeal of revenue dismissed.
Facts- This appeal has been filed by Revenue, assailing the impugned Order-in-Original dated 17.06.2016 passed by the Commissioner, Service Tax-VI, Mumbai by which the learned Commissioner dropped the proceedings initiated against the respondent herein vide show cause notice dated 19.10.2015.
The issue involved herein is whether the builder is liable to pay service tax on receipt of entire considerations from the buyer after issuance of ‘occupancy certificate’ when the term used is ‘Completion Certificate’ in the exception provided in Section 66E(b) of the Finance Act, 1994?
Conclusion- Held that having received the occupancy certificate from competent authority i.e. Vasai-Virar City Municipal Corporation and having sold the units/flats in issue subsequent to the date of issue of the said occupancy certificate, the appellant is not providing the declared services of construction of complex/building, etc. to any of such buyers and therefore the same falls within the exception provided in Section 66E(b) ibid. Thus, we do not find any merit in the appeal filed by the appellant-revenue and the same is accordingly dismissed by upholding the impugned order.
