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2015 (2) TMI 274 - MADRAS HIGH COURTWaiver of pre deposit - Construction of Residential Complex service - contravention of the provisions of Section 68 of Chapter V of Finance Act, 1994 read with Rule 6 of Service Tax Rules, 1994 - Held that:- Tribunal on a consideration of Rule 3 of the Service Tax (Determination of Value) Rules, 2006, which provides the manner of determination of value in respect of taxable service, namely, the service defined under Section 65(105)(zzzh) of the Finance Act, 1994 came to hold that the value of taxable service should be equivalent to the gross amount charged by the service provider to provide similar service to any other person, that is to say, the value of taxable service rendered in relation to the flats sold to independent persons. Accordingly, the Tribunal held that the appellant has failed to make out a prima facie case for waiver of pre-deposit of entire amount of duty along with interest and penalty and directed to make a pre-deposit of ₹ 12.00 lakhs. In view of the specific admission by the appellant before the Adjudicating Authority that the services rendered by the appellant would fall under Section 65(105)(zzzh) of the Finance Act, 1994. Notification No.29 of 2007 dated 22nd May, 2007 relates to taxable service falling under Section 65(105)(zzzza) of the Finance Act, 1994. Even otherwise, the language of Section 65(105)(zzzh) and the nature of the services provided by the appellant is construction of flat to the land owner and the transfer of land is only for the purpose of providing such taxable service, we fail to understand as to how the appellant would say that there is no liability to pay service tax in respect of 24 flats handed over to the land owner after rendering taxable service as defined under Section 65(105)(zzzh) of the Finance, 1994. If there is no monetary consideration in the transaction, then Section 65 of the Finance Act, 1994 provides for various methods for valuation. Hence, it is for the appellant to establish that his plea that the value of the land should be taken into consideration is a matter for the Tribunal to decide on merits at the time of hearing of the appeal. - Tribunal is justified in ordering pre-deposit of ₹ 12.00 lakhs as against the demand of ₹ 27.00 lakhs in an admitted case of the appellant providing taxable service, more so, in a case where the appellant failed to pay service tax in respect of even the admitted tax. - No substantial question of law arises - Decided against the assessee.
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