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2014 (12) TMI 1241 - AT - Service TaxValuation - determination of amount and time when the consideration was received - Construction of Residential Complex Service - Service tax of ₹ 2,27,94,428/- with interest has been demanded from the appellant on the ground that the amount collected from the buyers towards ‘Undivided Share of Land’ can be taken as consideration attributable to the land owners under the Joint Development Agreement and be subjected to service tax - Held that:- As per Notification No. 36/2010-S.T. dated 28.6.2010, in respect of new services introduced by Budget 2010, if value towards any service has been received before 1.7.2010, service tax on such value is exempted. In this case, the agreement was entered into on 26.4.2010 and on that date the land was handed over, it can be said that consideration of construction of residential complex was received by the appellant on that date. We also find that the submissions of learned counsel that no monetary consideration was agreed with the land owner and the appellant as per the JDA and therefore, consideration is not ascertainable has also some force. Once consideration is not ascertainable, valuation has to be done as per Section 67 read with Service Tax (Determination of Valuation) Rules, 2006. However, only with effect from 1.7.2012, Rule 3 covered cases where ‘value is not ascertainable’ and prior to this period, it only covered cases ‘where such value is not wholly or partly consisting of money’. - Prima facie case is in favor of assessee - stay granted.
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