Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *   CBIC issues draft rules for Customs valuation *  Top Headlines: Threshold for Benami deals, green bond investors, and more *  Govt aims 1-hour clearance for goods at all ports *  Exporters Allowed To Use RoDTEP, RoSCTL Scrips To Pay Customs Duty, Transfer Them; Rules Amended *  Millions of labourers to be affected by brick producers’ strike over hike in GST, coal rates *  Inauguration of ‘kendriya GST parisar’ *  Transporter can seek Release of Conveyance alone, not Goods under GST Act: Madras HC *  GST: Quoting of DIN Mandatory for Responding to Notice, Govt Modifies Portal *  Firms can soon file claims for GST credits of ?400 cr *  CBIC issues modalities for filing transitional credit under GST. *  Mumbai: Man creates 36 fake GST firms, arrested for input tax credit fraud of Rs 23 cr *  Report to restructure Commerce Ministry under study; idea is to set up trade promotion body: Goyal *  Firms can soon file claims for GST credits of ?400 cr *  Gambling Alert! Govt May Levy Up To 28% GST; UP, Bengal Back Move *  EPFO backs raising retirement age to ease pressure on pension funds *  India Moving Up Power Scale, Set to Become Third Largest Economy By 2030 *  Airfares Get Expensive: What Changes for Flyers From Today? *  IRCTC Latest News: Passengers to Pay More For Cancelling Confirmed Rail Tickets Soon. *  IBC prevails over Customs Act, says Supreme Court. *  As GST enters sixth year, a time for evaluation and reassessment *  There’s GST on daily essentials as Centre needs money to buy MLAs: Arvind Kejriwal *  Now, GST on cancellation of confirmed train tickets, hotel bookings *  GST kitty for top States could rise 20% in FY23, says Crisil *  French customs officials seize another cargo vessel over Russia sanctions *  TradeLens builds on Asia momentum with Pakistan Customs deal *  Hike tax on tobacco, reduce affordability & increase revenue: Civil society organizations to GST council *  Bihar: ?10 crore tax evasion on tobacco products detected in raids *  Centre failed on GST, COVID; would it be anti-national? Rajan on Infosys row *  Service Tax not Chargeable on Income Tax TDS portion paid by recipient: CESTAT grants relief to TVS *  Foreign portfolio investors make net investment of Rs 7575cr in Sep so far
Subject News *  Run-up to Budget: Monetary threshold for GST offences may rise to Rs 25 cr *   GST (Tax) E-invoice Must For Businesses With Over Rs 5 Crore Annual Turnover *   Both Central GST and excise duty can be imposed on tobacco, rules Karnataka high court *   CBIC Issues Clarification On Extended Timelines For GST Compliance *   CBIC Issues Clarification On Extended Timelines For GST Compliance *  Budget 2023- 9.6 crore gas connections *  GST: Tamil Nadu Issues Instructions for Assessment and Adjudication Proceedings *  GST: CBIC Extends Last Date for filing of ITC *  GST collection in September surpasses Rs 1.4 lakh crore for straight seventh time *  Dollar smuggling case: Customs chargesheet names M Sivasankar as key conspirator. *  Hike in GST rates fuels inflation *  Assam: CBI arrests GST commissioner in Guwahati *  GST fraud worth ?824cr by 15 insurance Cos detected *  India proposes 15% customs duties on 22 items imported from UK *  Decriminalising certain offences under GST on cards *  Surge in GST collections more due to higher inflation: India Ratings *  MNRE Notifies BCD and Hike in GST Rates as ‘Change in Law’ Events But With a Condition | Mercom India *   Solar projects awarded before customs duty change allowed cost pass-through *  Rajasthan High Court Dismisses Writ Petitions Challenging Levy Of GST On Royalty *   GST revenue in September likely at Rs 1.45 lakh crore *  Govt working on decriminalising certain offences under GST, lower compounding charge *  Building an institution like GST Council takes time, trashing is easy: Sitharaman *  GST collections in Sept may touch ?1.5 lakh crore *  KTR asks Centre to withdraw GST on handlooms *  After Gameskraft, More Online Gaming Startups To Receive GST Tax Claims *  Madras HC: AAR Application Filed Under VAT Does Not Survive After GST Enactment *  Threshold for criminal offences under GST law may be raised *  Bengaluru: Gaming company faces biggest GST notice of Rs 21,000 crore *  CBIC clarifies Classification of Cranes for GST, Customs Duty *  Customs seize gold hidden in bicycle in Kerala airport  

Comments

Print   |    |  Comment

PJ/Case Laws/2012-13/1524

Whether construction of 17 residential quarters distributed in different buildings in same compound liable to service tax?

Case:-ARIHANT CONSRUCTION Versus COMMISSSIONER OF CENTRAL EXCISE, JAIPUR-II

Citation:-2013(30) S.T.R. 64(Tri.-Del.)

Brief Facts:-The appellants were regis­tered for rendering the services of construction of complex. They constructed several quarters for Kendriya Vidyalaya. These residential quarters were distrib­uted in different buildings in the same compound. None of the buildings had more than 12 flats in each building. However, Revenue was of the view that the word 'complex' has to be interpreted to mean the entire compound and if the entire compound is considered as one complex, there were 17 flats constructed in the complex and therefore, they had to pay service tax under the entry of con­struction of complexes. A show cause notice was issued and adjudicated confirming duty to the extent of Rs. 2,47,598/- along with interest and penalties under Sections 76 and 78.

Appellant Contentions:-  The submission of the Counsel is that as per the definition of 'resi­dential complex' as given at sub-section (91a) of Section 65, only building having more than 12 residential units in a building will be considered a residential com­plex. He submits that this issue was under dispute and it was decided by the Tri­bunal in the case of Macro Marvel Projects Ltd. v. CST, Chennai [2008 (12) S.T.R. 603 (Tri.-Chennai)] holding that only those buildings of more than 12 residential units in the same building will be covered by the definition of residential com­plex. Revenue being aggrieved by the said decision, had filed an appeal with the Hon'ble Supreme Court and the same was dismissed by the Supreme Court as reported at 2012 (25) S.T.R. J154. Therefore, the Counsel submits that there is no merit in the arguments of Revenue and appeal should be heard without any pre- deposit.

Respondent Contentions:-  Learned AR for Revenue is reiterating the submissions which were argued in the case of Macro Marvel Projects, that is the compound of Kendriya Vidyalaya has to be taken as one complex and in this complex, the appellants have constructed more than 12 residential units and therefore, the complex will be covered by the definition at 65(91a) inasmuch as, approval was given by CPWD and Ministry of Human Resources Development for the complex as a whole. He also draws our attention to Explanation-I under sub-section (91a) which defined 'residential unit' stating the residential unit for a single unit for a single apartment for the place.
 
Reasoning of Judgment:-We have considered the submission from both the party and examined the record, the definition of residential complex reads as under:
(91a) "residential complex" means any complex comprising of —
(i) a building or buildings, having more than twelve residential units;
(ii) a  common area; and
(iii) any one or more of facilities or services such as park, lift, park­ing space, community hall, common water supply or effluent treatment system,
located within a premises and the layout of such premises is approved by an authority under any law for the time being in force, but does not include a complex which is constructed by a person directly engaging any other person for designing or planning of the layout, and the construction of such complex is intended for personal use as residence by such person.
Explanation — For the removal of doubts, it is hereby declared that for the purposes of this clause, —
(a)"personal use" includes permitting the complex for use as resi­dence by another person on rent or without consideration;
(b)"residential unit" means a single house or a single apartment intended for use as a place of residence;
This definition is applicable for taxable entry 65(105)(zzzh) the entry relevant for deciding this appeal as also 65(105)(zzzza) covering works contract which was the entry in the case of Macro Marvel Projects (supra).
We find that the explanation pointed out by the AR has nothing to do with the dispute in hand because that explanation defines 'residential unit' and the definition in dispute is that of 'residential complex'. The explanation can mean only that the building should have 12 residential units. So the explanation is not for interpreting the meaning of 'residential complex'.
Since the Hon. Supreme Court has already confirmed the interpreta­tion in favour of the appellant, we find it proper to waive the requirement of pre- deposit of dues arising from the impugned order and stay collection of such dues during the pendency of the appeal.
 
Decision:-Stay application allowed.

Comment:-The essence of this case is that as residential complex means building should have 12 residential units, construction of 17 residential quarters distributed in different buildings in same compound is not liable to service tax.
 
 

Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com