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2020 (3) TMI 577 - AT - Service TaxConstruction of complex services - work undertaken by the appellant for the Bhopal Development Authority for construction of 489 EWS quarters at Vinayak Nagar - period April, 2012 to 31 March, 2013 - Demand of service tax with interest and penalty - HELD THAT:- A complex may have a building having more than twelve residential units or a complex may have more than one building each having more than twelve residential units. Independent buildings having twelve or less than twelve residential units would not be covered by the definition of “residential complex” - In the present case, the appellant had constructed independent buildings having one residential unit only. Thus, even if the appellant had constructed more than 12 independent buildings, the nature of activity would not be “construction of complex” and, therefore, the service tax could be levied. The appellant has not constructed a residential complex having more than 12 residential units. It has constructed independent buildings having one residential unit - The decisions of the Tribunal in MACRO MARVEL PROJECTS LTD. VERSUS COMMR. OF SERVICE TAX, CHENNAI [2008 (9) TMI 80 - CESTAT, CHENNAI] and AS SIKARWAR VERSUS COMMISSIONER OF CENTRAL EXCISE, INDORE [2012 (11) TMI 1000 - CESTAT, NEW DELHI] clearly apply to the facts of the present case, where it was held that service tax can be demanded under section 65(105)(zzzh) only if the building concerned has more than 12 residential units in the building and such levy will not apply in cases where in one compound has many buildings, each having not more than 12 residential units. The definition of “construction of complex” and a “residential complex” continue to remain the same after 1 July, 2012 and, therefore, service tax liability could not have been fastened even after 1 July, 2012 under “construction of complex” - The levy of service tax on the appellant under ‘construction of complex service’ is, therefore, not justified and, cannot be sustained. The order confirming the demand of service tax under “construction of complex services” is set aside - Appeal allowed - decided in favor of appellant.
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