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2015 (1) TMI 386 - AT - Service TaxWaiver of pre deposit - construction of residential complexes - Invocation of extended period of limitation - Held that:- Since the amounts were paid during the course of construction and were not collected on actual basis, it cannot be said that it is not part of the construction activity. Moreover provision of electricity, water and advocate fee for verifying documents etc are essential requirements to be fulfilled before the building is handed over. It was also agreed that such payments were made to BWSSB, KEB etc. before the occupancy certificate was issued. The payments to BWSSB etc. as well as the payments by the buyer were made during the construction period. Therefore it is difficult to accept the view that it is not part of the construction cost. Once it is part of the construction cost, it becomes liable to tax. Therefore prima facie we do not find any merit in the appellant’s case. Extended period of limitation - Held that:- extended period cannot be applied and further prior to 01.07.2010, tax could not have been demanded. This is because the amendment to the definition which resulted in transaction within the individual buyer/builder/developer also becomes liable to service tax only after 01.07.2010. Further we also consider that the issue is a debatable one and subject to different interpretations and therefore extended period may not be invokable. However since we have taken a view that appellant is liable to pay service tax on these elements of cost, we consider that appellant should deposit the entire amount of tax demanded and payable with interest for hearing the appeal for normal period. - Partial stay granted.
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