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2021 (11) TMI 601 - AT - Service TaxRefund of service tax - purchase of under-construction flats/floors to the builder(s) - composite contracts - HELD THAT:- Levy of service tax on composite contract for purchase of under construction complex, as defined under Section 65(105)(zzzh) of the Finance Act, 1994, was the subject matter of dispute before the Hon’ble Delhi High Court - In the case of SURESH KUMAR BANSAL & ANUJ GOYAL & ORS. VERSUS UNION OF INDIA & ORS. [2016 (6) TMI 192 - DELHI HIGH COURT], the Hon’ble Delhi High Court has held that no service tax shall be levied on composite contracts. From a plain reading of the Section 65(105)(zzzh), it is evident that there is no legal mandate to bifurcate the elements of a composite contract as to service component and material component and /or land component and thus, in absence of such mandate, the value of a composite contract cannot be disintegrated for the purpose of service tax levy as held by the Hon’ble Supreme Court in the case of COMMISSIONER, CENTRAL EXCISE & CUSTOMS VERSUS M/S LARSEN & TOUBRO LTD. AND OTHERS [2015 (8) TMI 749 - SUPREME COURT] - in spite of retrospective amendment in Rule 2 A of the Service Tax (Determination of Value) Rules, 2006, service tax cannot be charged for the services defined under Section 65(105)(zzzh). Revenue is directed to refund the amount of ₹ 3,53,821/- paid through the builder to the Government exchequer within a period of 45 days from the date of receipt/service of copy of this order along with interest @ of 6% from the date of deposit of the tax, till the date of refund - Appeal allowed - decided in favor of appellant.
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