Case Law Details
Jamals Vs Commissioner of Service Tax (CESTAT Chennai)
The Learned Advocate for the appellant would submit, at the outset, that the appellant, being a developer, is engaged in the development of residential projects and the contracts entered into with its customers were in the nature of composite contract involving both service and transfer of property in goods.
She would further submit that during the relevant period under dispute, the Show Cause Notice was issued with respect to one of the appellant’s projects viz. ‘Palazzo’. She would also contend that the completion certificate of the above project was obtained on 09.06.2010 and that there was no Service Tax liability on a developer of residential projects for the period prior to 01.07.2010 since developers were brought under the tax net vide the Finance Act, 2010 with effect from 01.07.2010 by way of insertion of Explanation to Section 65(105)(zzzh).
In the light of the above discussions and the order of the Hyderabad Bench, it is clear that no Service Tax could be levied on construction of residential complex on the appellant. The period of dispute here, as observed by us in the earlier paragraphs, is from April 2009 to June 2010 and hence, we are of the view that no Service Tax was exigible on the appellant.
FULL TEXT OF THE CESTAT CHENNAI ORDER
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