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2013 (8) TMI 674 - AT - Service TaxService tax demand u/s 73A – sale of flats - collection of amount towards service tax but not as service tax - contingent liability – department contended that service tax liability would arise under ‘Works Contract Service' for prospective customers under the agreement for sale – appellant constructed flats for sale - a circular dated 01/08/2006 CBEC clarified that liability to pay service tax is on the person who undertook actual construction and not on the builder – Held that:- Provisions of Section 73A are not attracted - the appellant cannot be blamed for believing that the amount is required to be collected - It was the Directorate General of Service Tax which issued the circular saying that the amount is required to be collected and - the appellant cannot be blamed for believing that the amount is required to be collected - appellant took the precaution of collecting it as ‘contingent liability' and not as service tax per se – he also made it clear that in case the outcome of the judicial proceedings emerges in their favour, the amount would be refunded along with interest – appeal allowed in the favour of assessee.
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