Case Law Details
Manjeera Constructions Ltd. Vs Commissioner of Central Excise, Customs & Service Tax (CESTAT Hyderabad)
The issue under consideration is whether service tax will be levied on promoters/builders/developers prior to 01.06.2010 in respect of the construction of the residential complex?
In the present case, the appellant is engaged in the construction business and registered with the service tax department vide registration. The Appellant has developed and sold apartments to prospective buyers. The Appellant was paying service tax regularly on all the services and stopped making payment of tax from January 2009 in view of circular which is also intimated the same to the department. The services rendered by M/s Manjeera Constructions to various customers as detailed in Annexure-II to this Show Cause Notice during the period from 2005-06 to 2009-10 should not be classified under “Construction of Complex Services” and short paid amount of Rs. 42,01,090/- for the period 2005-06 to 2009-10 should not be demanded from them on account of providing taxable services, under Section 73(1) of the Finance Act, 1994 read with the proviso thereto.
We find that the CBEC by way of clarification vide Circular No. 108/02/2009-ST dated 29.01.2009 r/w Circular No. 151/2/2012-ST dated 10.02.2012, have clarified that for the period prior to 01.06.2010, construction (residential) provided by builder / developer will not be taxable. Admittedly, the tax under this category, of Rs. 42,01,090/- relates to the period prior to 01.06.2010. Accordingly, this ground is allowed in favour of the appellant and the demand is set aside.
FULL TEXT OF THE CESTAT JUDGEMENT
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