TMI Blog2017 (9) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only one single story house has been constructed. For the activity to fall within the construction of complex service, a single building having atleast 13 residential units should be constructed. He has also relied upon the decision of the Tribunal in the case of Macro Marble Projects ltd. - 2008 (12) STR 603 (SC) which has been upheld by the Hon ble Supreme Court. ii) With reference to the internal development works including construction of roads, and other infrastructure, the adjudicating authority has taken the view that these infrastructure development works cannot be classified under the category of residential complex. These activities would fall under the commercial or industrial construction on which no service tax can be levied since these are in the nature of civic amenities provided by authority constituted under the law and are not commercial activities of GNIDA. iii) In respect of construction of boys hostel for Gautam Budh University, he has dropped the demand for the reason that the construction of boys hostel cannot be categorized under construction of residential complex. No service tax can be levied on such construction since it is meant for the use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable to the facts of the present case since in both the cases, the activity was construction of individual residential units. He also cited several other case laws to support his argument. 8. The dispute is with respect to whether the construction activity undertaken by the respondent is leviable to service tax under the category of construction of complex services. For ready reference, we reproduce the relevant definition: Definition and scope of service as per Section 65(30a) of the Finance Act 1994: construction of complex means - (a) construction of a new residential complex or a part thereof; or (b) completion and finishing services in relation to residential complex such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services; or (c) repair, alteration, renovation or restoration of, or similar services in relation to, residential complex; Definition of Residential Complex as per Section 65(91a) of the Finance Act, 1994 :- residential complex m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tant question to decide the issue is whether these individual independent residential units are situated as part of a complex with common area and one or more facilities. We have perused the layout plan submitted by the ld. Counsel of OMICRON-I layout. We find that the entire area is divided into several clusters of plots on which individual houses have been built for the respondent. We note that each house shares a wall with the houses on either side as well as the one in front / behind. We also find that there are common facilities such as parks, community hall, etc. and note that the layout plan of each house is provided by the GNIDA which is also one of the requirements for governing residential complex. In view of the above, we are of the view 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. Howe ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
