TMI Blog2013 (8) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... tial complex was not for the residence of the assesse but the individual residence units were constructed for residential use of the persons for whom such units were constructed - The fact that individual residential units were for residential use of the purchaser cannot take the complex outside the definition - Any interpretation to the contrary will make the entry otiose. Limitation of Time-Barred – Held that:- The contention of the assesse regarding time bar does not appear to be supported by provisions in statute because the demand does not cover any period beyond one year from the date of disclosure - In respect of demands prior to the date of disclosure the time limit of one year may not apply for issue of Show Cause Nature. Wai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The applicant is engaged in promotion and construction of residential complexes for sale of residential flats to prospective customers. They were procuring land from land owners and constructing residential flats. They were obtaining the necessary permission from different authorities concerned like MMDA, appointing Architects, Structural Engineers etc. They were also advertising and canvassing prospective buyers to purchase flats and after identifying prospective buyers they were entering into two separate agreements with such prospective buyers. i. Agreement of sale of the undivided share (UDS) of the land for each individual buyer of flats in the residential complex. ii. For construction of flat for each buyer of UDS. Both these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the applicant relies on the following circulars issued by the CBEC in support of his argument. 1. Circular F. No. 137/12/2006-CX.4 dated 29.01.2009 2. Circular F. No.108/02/2009 dated 29.01.2009. 6. He also relies on the decision of the Hon. Gauhati High Court in Magus Construction Pvt. Ltd Vs. UOI-2008 (11) STR (Gau) and the decision of the Tribunal in the case of CCE Vs. UB Constructions-2009 (15) STR 234 (del-Tri) 7. The Counsel further submits that UDS was registered only after construction was completed. After completion of the construction activity, the registration is done with the state government authorities only in respect of undivided shares (UDS) of land and the value of the flat already constructed, and appurtenant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r hearing without any pre-deposit for the reasons stated above. 12. Opposing the prayer, the Ld. AR for Revenue submits that the very fact that the applicant had executed agreement with each of the prospective buyers for providing construction service shows that there was a relationship of service provider and service recipient between the applicant and the prospective buyers. The Ld. AR further argues that the applicant did not enter into any sale deed for selling constructed flat. He argues that the clarifications issued by the CBEC are applicable only when flats are constructed and constructed flats are sold to the identified buyers. In this case, the applicant themselves are admitting that they were only handing over the possession of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rgues that any definition which makes an entry otiose should not be adopted while interpreting a definition. 14. The Ld. AR further points out that the contention raised by the applicants have already been examined by the Tribunal in the case of LCS City Makers Vs. CST - 2013 (30) S.T.R. 33 (Tri. - Chennai), in almost all respects except that in that case UDS was registered before starting the construction work. He submits that since there is contract with each prospective buyer for providing service the fact that UDS was registered after the construction was completed should not make any difference to tax liability. 15. The Ld. A.R points out that the entire matter was unearthed during investigation by department and by voluntary discl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lities or services such as park, lift, parking space, community hall, common water supply or effluent treatment system,located within a premises and the layout of such premises is approved by an authority under any law for the time being in force, but does not include a complex which is constructed by a person directly engaging any other person for designing or planning of the layout, and the construction of such complex is intended for personal use as residence by such person. Explanation. - For the removal of doubts, it is hereby declared that for the purposes of this clause, (a) personal use includes permitting the complex for use as residence by another person on rent or without consideration; (b) residential unit means a single h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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