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2017 (9) TMI 270 - CESTAT NEW DELHIConstruction of complex services - whether the construction activity undertaken by the respondent is leviable to service tax under the category of construction of complex services? - Held that: - each of these clusters of houses will form a residential complex comprising of several individual residential houses with common area and various facilities. Consequently, these will be covered within the definition of construction of complex and liable to service tax. The adjudicating authority’s interpretation that more than 12 residential units should be part of one building situated in one plot of land is without any basis - In terms of the decision of Hon’ble Supreme Court in the case of Larsen & Toubro [2015 (8) TMI 749 - SUPREME COURT] such composite construction are liable to service tax only w.e.f. 01.06.2007 under the category of works contract services - matter is remanded to the original authority for a fresh decision, keeping in view the law laid down by the Hon’ble Apex Court in the case of Larsen & Toubro case. Construction of complex services - internal development works constructed by the respondent including roads and other infrastructure development such as construction of building, water supply and other facilities - Held that: - the construction of various infrastructure facilities have been provided by the respondent along with construction of residential complex. These covered by a separate contract and from the nature of activities carried out, we are of the view that these are in the nature of civic amenities being provided by the authority constituted under law on above commercial activities of GNIDA. Such welfare activities cannot be covered by the construction of complex services and the adjudicating authority has rightly dropped the demand for service tax. Construction of boys hostel for Gautam Budh University - Held that: - As is well known, a hostel cannot be considered as a residential unit and hence cannot be covered within the construction of complex services. In any case, such construction activity has been done for the use of Gautam Budh University which is an institution established solely for educational purpose - no service tax will be payable on construction of boys hostel. Appeal allowed - decided partly in favor of appellant.
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