Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 1389 - AT - Service TaxConstruction of residential complex service - management, maintenance or repair service - demand of service tax - Held that:- It is not disputed that such construction activities involve both supply of labour as well as element of service and contracts are composite in nature. The demand prior to 1.6.2007 cannot sustain as per the decision of Apex Court in Larsen & Toubro Ltd. [2015 (8) TMI 749 - SUPREME COURT] - The Tribunal in the case of Real Value Promoters [2018 (9) TMI 1149 - CESTAT CHENNAI] had analyzed the very same issue and had held that even after 1.6.2007, service tax on such composite contracts would not be sustainable under Residential Complex Services or Commercial or Industrial Construction Services - the demand made under Construction of Residential Complex cannot sustain and requires to be set aside. Management, maintenance or repair service - Held that:- The appellant has collected a lumpsum amount which forms a corpus and is transferred to the flat owners association. Apart from this, the appellant has collected maintenance charges at ₹ 1.25 per square feet. The said amount would definitely be subject to levy of service tax if it has not been formed as part of corpus that has been transferred to the association. However, this fact whether corpus was transferred to association and how much was collected by appellant for Management, Maintenance and repair service is not forthcoming. For this reason, the matter requires to be remanded to the adjudicating authority who shall look into the issue of demand under management, maintenance or repair service. Appeal allowed in part and part matter on remand.
|