Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2014 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 292 - CESTAT CHENNAIStay - Duty Demand – Interest and Penalty u/s 78 – Assesse was engaged in the business of providing commercial and industrial construction service and also construction of residential complex service – Held that:- The service would be liable to tax depending on the date of providing service and not based on the date of receiving payment or consideration in the form of land – The contention that the huge amount of black money that exchanges hands in land deals and since the so called free construction was done for a party who made land available and not to a totally independent party cannot be accepted. Service tax payable on the owners share of the residential complex – Revenue was of the view that the sale value of land was an artificial value recognized by the State authorities for the purpose of registration and was not the real value of the land - Construction undertaken for the land owner involves service rendered by the assesse to the land owner – relying upon LCS City Makers Pvt. Ltd. Vs CST, Chennai [2012 (6) TMI 363 - CESTAT, CHENNAI ]. Part of the service to the land owners were received in the form of land prior to 01-06-2007 follows – the contention that they started receiving consideration for the service only after 01-06-2007 does not appear to be correct - If liability accrued prior to 01-06-07, the assesse may not be eligible to scheme notified from 01-06-2007 – a person who did not promptly pay tax can be put on a more advantageous position as compared to a person who complied with law cannot be held eligible for benefit of the new scheme as per Rule 3 (3) of Works Contract Rules - a harmonious construction may imply situations - If the demand was confirmed under the construction of complex service as proposed by Revenue as against works contract service adopted by assesse, the assesse may be eligible for the benefit of abatement under Notification No.1/06-ST with suitable adjustment for reversal of CENVAT credit taken. Waivers of pre-deposit – 1crore were ordered to be paid as pre deposit – upon such submission rest of the duty to be waived till the final disposal.
|