Saket Promoters Limited Vs Principal Commissioner of Service Tax-I (CESTAT Kolkata)
The appeal challenged an Order-in-Original confirming a service tax demand of Rs. 7,70,381 along with interest and an equal penalty in respect of a real estate project at 39A, Jorapukur Square Lane, Kolkata. The adjudicating authority had confirmed the demand solely on the ground that the completion certificate dated 11.06.2010, issued by Shri Sanjib Datta, LBS.I/1165, Kolkata Municipal Corporation (KMC), was not a valid completion certificate, as it had not been issued by the competent authority under the Kolkata Municipal Corporation Building Rules, 2009. On this basis, the authority rejected the appellant’s claim that the project had been completed before the relevant date.
The appellant contended that Shri Sanjib Datta was an authorized technical person of the Kolkata Municipal Corporation who had inspected the project and certified its completion on 11.06.2010. It was further submitted that the competent municipal authority subsequently issued a formal completion certificate on the basis of the said technical certification. Accordingly, the appellant argued that the actual completion date of the project should be treated as 11.06.2010 and that no service tax demand could survive.
The Revenue maintained that the certificate issued by Shri Sanjib Datta could not be accepted as a valid completion certificate, as he was not the competent authority to issue such certificate, and therefore supported the adjudicating authority’s decision.
