Vishal Projects Ltd Vs Commissioner of Central Tax (CESTAT Hyderabad)
CESTAT Hyderabad held that bookings made after receipt of completion certificate is not liable for service tax as the transaction is mere sale of the immovable property. Accordingly, service tax demand to that extent is liable to be set aside.
Facts- The appellants were engaged in construction of complex. The appellant didn’t pay service tax under various projects with a belief that Sale of independent houses is not a service and not covered under the definition of Residential Complex; sale of immovable property is not liable for the service tax and stamp duty has been discharged on total consideration. However, department felt that service tax was leviable on said services.
Conclusion- Held that co-ordinate Bench, Allahabad in the case of ABA Builders Ltd., Vs Commissioner of Central Excise and Service Tax, Ghaziabad has held that bookings made after receipt of completion certificate is not liable for service tax as the transaction is mere sale of the immovable property where no service element is present and no service tax can be imposed in absence of agreement for service. Thus, demand by show cause notices dated 24.10.2011 for the period 01.07.2010 to 31.03.2011, demand by show cause notice dated 20.10.2013 for the period April 2011 to March 2012 as well as demand by show cause notice dated 16.05.2014 for the period April 2012 to June 2012 are also not sustainable.
