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2010 (12) TMI 34 - HC - Service TaxConstruction of complex – service tax on sale and purchase of flats – 65(105)(zzzh), 65(30a) and 65(91a) – Explanation inserted through Finance Act, 2010 – Constitutional validity – held: - contention that there is no element of service of construction involved in a builder selling a flat cannot be accepted. Whether or not service is involved has to be seen not only from the point of view of the builder but also from the point of view of the service recipient. What is sought to be taxed is service in relation to construction which is certainly involved even when construction is carried out or got carried out before construction and before flat is sold. the levy of tax is on service and not on service provider and construction services are certainly provided even when a constructed flat is sold. Taxing of such transaction is not outside the purview of the Union Legislature as the same does not fall in any of the taxing entries of State list.
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