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2018 (11) TMI 984 - AT - Service TaxValuation - Construction of Residential Complex Service - inclusion of amount collected by the appellant as Interest Free Maintenance Security in assessable value - demand of service tax on External Development Charges. Inclusion of the amount collected by the appellant as IFMS - whether fall under the category of Management Maintenance and Repair Services or otherwise? - Held that:- The amount is refundable in case of termination of the ownership agreement and if no such termination has taken place till date, the amount would not be refunded. As long as the provisions for refund of the said amount in the agreement itself is there, it has to be considered that the said amount is refundable and was towards security deposits and was not for the purpose of providing any services, so as to levy tax on the same - reliance placed in the case of CCE & ST, Jaipur vs. Sand Dunes Construction Pvt. Ltd. [2018 (7) TMI 1383 - CESTAT NEW DELHI], where it was held that the security deposits collected by the Builder for providing maintenance to immovable property services would not be taxable under the category of ‘Management Maintenance or Repairs Services’ - demand set aside. Special services provided by Builder - demand of service tax on "External Development Charges‟ - Circular No.334/1/2010-TRU dated 26/02/2010 - Held that:- Being a part of the State Government, the payment made to the Development Authority are required to be considered as having been made to State Governments - Admittedly Ghaziabad Development Authority has been constituted under Uttar Pradesh Urban Planning and Development Act, 1973 and money collected by the appellant stands paid to them for obtaining the facilities. As such nothing stand collected by the appellant from their customers for providing any taxable service - demand not sustainable. Appeal allowed - decided in favor of appellant.
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