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2023 (12) TMI 174 - CESTAT HYDERABADLiability of service tax - sale value of the unfinished flat, for which the agreement of sale/sale deed was entered and thereafter vide separate agreement, the appellant builder completed the construction for separate consideration - HELD THAT:- The appellant is not liable to service tax on the value of the unfinished flat including the value of undivided share in land as on the date of sale or Agreement of sale entered by the appellant builder with the prospective buyer - it is clarified that appellant is liable to service tax only for the receipts received towards finishing of the unfinished flat(s) on or after the date of sale - it is further made clear that appellant is not liable to service tax on other receipts like-towards electricity installation, maintenance charges, towards maintenance security, etc. Thus, the appellant is only liable to service tax under WCS on the amount attributed to construction activity, after the agreement of sale/execution of sale deed. Learned Counsel has also clarified that in the impugned order learned Commissioner has given credit by way of appropriation for the amount of tax already paid i.e. Rs 34,32,328/-, which does not include the amount of CENVAT credit and also some challans, which were not considered at that time, and if these are considered, the tax payable by the appellant comes to Rs 34,32,328/-. The impugned order set aside - appeal allowed.
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