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2010 (10) TMI 504 - AT - Service TaxWaiver of pre-deposit - Commercial or Industrial Construction’ Service and ‘Construction of Complex’ Service - The works were undertaken in terms of agreements between the appellant-company and various beneficiaries - It appears from the relevant agreements that the liability to pay service tax was placed on the contractors - The contractors accordingly paid service tax at the compounded rate of 2.06% as applicable to “works contracts”. The impugned demand of service tax is on a taxable value, on a part of which the contractors paid service tax - Any service provided or to be provided to any person by any other person in relation to “commercial or industrial construction” and “construction of residential complex” would be a taxable service with effect from 1-7-2010 by Section 76 of the Finance Act, 2010 - the deeming provision contained in the explanation added to Section 65(105)(zzq) and (zzzh) of the Finance Act, 1994 will have only prospective effect from 1-7-2010 - A builder cannot be deemed to be service provider providing any service in relation to industrial/commercial or residential complex to the ultimate buyers of the property - Admittedly, the entire dispute in the present case lies prior to 1-7-2010 - prima facie case against the impugned demand of service tax - Hence, waiver of pre-deposit and stay of recovery .
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