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2013 (8) TMI 678 - CESTAT CHENNAIConstruction of Commercial Complex and Residential Complex - The assesse was engaged in construction activity both of commercial complex and residential complex - Revenue revealed that the applicant did not pay appropriate service tax on three projects executed by them - Held that:- Construction of industrial or commercial complex and construction of residential complex were made taxable under entries 65(105)(zzq) and 65(105)(zzzh) even prior to 1.6.2007. The new entry introduced on 1.6.2007 only brings in a new method of payment of service tax liability for these services - The new entry used the same expressions as were used in the previous entries - LCS City Makers Pvt. Ltd. Versus Commissioner of Service Tax, Chennai [2012 (6) TMI 363 - CESTAT, CHENNAI] – The previous entries also provided for appropriate abatement for value of goods and material involved in providing such services - The question of valuation of property handed over to the land owner was also dealt with in the said order and it was decided that value of comparable property constructed for independent buyers can be adopted as a basis for service rendered to the land owner. It was very clear that the construction activity was undertaken on the land already registered in the name of the client and therefore service was being provided by the applicant to such clients - the clarification issued by CBEC was applicable only in cases where the constructed flats or shops were being sold and were registered for sale - For services rendered to the land owners also it was not a case of uncertain profit to be shared by the two but a case of an agreement to do the service of construction of complex for definite consideration in the form of UDS transferred by the land owner to the applicant or sold as directed by the applicant – forty lakhs were ordered to be submitted as pre-deposit – upon such submission rest ot the duty to be waived – conditional stay granted.
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