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2016 (3) TMI 715

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..... ment's contention that CBEC Circular dated 29/1/2009 not applicable to appellant's case is not accepted. The main point of clarification by the CBEC is on the implication of “agreement to sale” and provisions of Transfer of Property Act to determine the question of service to another person or service to self. It has been clarified that the execution of sale deed transfers the ownership of their p .....

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..... rvice. Proceedings were initiated against them for non-payment of service tax for the period 2004-2005 to 2007-2008 in respect of construction of complex service. The appellant entered into joint venture with the land owners in 4 places. As per the agreements the appellants borne the construction expenses in lieu of which the appellant got share of ownership of 50% of the total construction area. .....

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..... owner only after the completion of the construction and on full payment of the consideration. Any service provided by the seller in connection with construction of residential complex till the execution of such sale deed would be in the nature of self-service and consequently would not attract service tax. Reliance was placed by the learned Counsel on various decisions of the Tribunal and Hon ble .....

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..... ction of commercial building, whereas the Circular is relating to construction of residential units. We fail to appreciate such distinction. The main point of clarification by the CBEC is on the implication of agreement to sale and provisions of Transfer of Property Act to determine the question of service to another person or service to self. It has been clarified that the execution of sale dee .....

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..... e of activity and agreement as mentioned in the impugned order it is apparent that the 50% share of the constructed property is transferred to the land owner only upon completion of the construction and there is nothing on record to indicate that there is a service provider and recipient relationship before such transfer of constructed building to the possession of land owner. In view of the above .....

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