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2019 (12) TMI 180 - AT - Service TaxClassification of services - works contract service or construction of residential complex service? - development agreements for construction of residential complexes involving the land owner, developer and third parties - period prior to 01.07.2010 - HELD THAT:- The issue is no more res-integra and decided in the case of M/S KRISHNA HOMES VERSUS CCE, BHOPAL AND CCE, BHOPAL VERSUS M/S RAJ HOMES [2014 (3) TMI 694 - CESTAT AHMEDABAD] where it was held that Such contracts are to be treated as works contracts, it has to be held that during the period of dispute, there was no intention of the Government to tax the activity in terms of such contracts a builder/developer with prospective customers for construction of residential units in a residential complex. Such works contracts involving transfer of immovable property were brought within the purview of taxable service by adding explanation to Section 65 (105) (ZZZh) w.e.f. 01/7/10, and therefore, it has to be held that such contracts were not covered by Section 65 (105) (ZZZh) during the period prior to 01/7/2010. As the present demand pertains entirely to period prior to 01.07.2010, the demands are not sustainable and need to be set aside - the demands of interest and imposition of penalties also need to be set aside - Appeal allowed - decided in favor of appellant.
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