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M/s. S.P. Builders, M/s. Gejendra Singh Sankhla Versus CCE, Jaipur

2018 (2) TMI 833 - CESTAT NEW DELHI

Construction of complex service - whether or not the appellants have undertaken the taxable activities of construction of complex service. We have perused the impugned orders? - Held that: - the appellants constructed individual houses of less than 12 nos. and also G + 3 buildings, having multiple units, in large numbers. They have constructed housing units in such different multi-story buildings numbering 96, 48, etc. It is apparent that such complexes would be having common facilities. However .....

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e factual finding by the Original Authority. - Time limitation - penalties - Held that: - Admittedly, in the case of construction activities, there has been a substantial litigation on the applicability of the various tax entries - the case against the appellant has to be restricted to the normal period and there can be no penalty for such tax liability. - The matter is remanded back to the Original Authority for a fresh decision - appeal allowed by way of remand. - Service Tax Appeals N .....

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activities. Certain inquiries were conducted against them with reference to their service tax liability under the category of construction of complex service . On completion of inquiry, proceedings were initiated against them to demand and recover service tax under the said category. The original authority adjudicated the case. The Original Authority confirmed service tax liability of ₹ 2,44,72,251/- and ₹ 1,10,71,204/- on the appellant. He also imposed penalties under Section 76, 77 .....

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service tax as they are not sharing any common facilities. (b) The constructions were carried out for residential houses for rehabilitation of people of village Kawas which was destroyed due to flood and were not taxable as it nowhere satisfies the definition of complex and are meant for commercially weaker sections. (c) These constructions are in pursuant to a composite work order involving supply of goods as well as provision of service. They are not liable to service tax prior to 1.6.2007 in .....

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contesting the arguments stated that the appellants have constructed residential complexes and drew our attention to some of the work orders, wherein construction of 96 or 48 housing units for EWS have been done by the appellants. He further submitted that the plea of the appellant that these complexes do not have any common facilities is not acceptable. The complexes having such large number residential units with common facilities are covered by tax entry correctly. Regarding application of w .....

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ailable in the impugned order. Certain inquiries have been made regarding availability of common facilities to apply the tax entry to the activities carried out by the appellant. We note that the appellants constructed individual houses of less than 12 nos. and also G + 3 buildings, having multiple units, in large numbers. They have constructed housing units in such different multi-story buildings numbering 96, 48, etc. It is apparent that such complexes would be having common facilities. Howeve .....

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olving construction of Rajasthan Housing Board, the Tribunal examined the similar set of facts and observed as under:- 3. We note that the contracts executed by the appellants in relation to construction of residential complex were subjected to Service Tax under Construction of Complex Service prior to 01.06.2007 and under Works Contract Services after 01.06.2007. Admittedly, these contracts are of composite nature, involving supply of materials as well as provision of service. In terms of the d .....

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t with Rajasthan Housing Board. This aspect is being contested by the appellant. A perusal of the impugned order indicates that the original authority examined the general scope of the term Residential Complex and inferred that generally housing colonies built by State Housing Boards will have large common area, common approach, water supply, park, community centre and many other common facilities. We find that the original authority also distinguished the decision of the Tribunal in Macro Marve .....

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in fact, having common areas as mentioned in the statutory definition. This can be verified from the approved layout and other supporting documents. In the absence of specific finding in this regard, it will not be correct to conclude on a particular tax entry. 4. In view of the above discussion and analysis, we find that the impugned order as it stands with reference to tax liability of the appellant for construction of residential complex, is not sustainable. Accordingly, that portion of the f .....

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o place their side of the case, before a fresh decision is taken by the original authority. The appeal is allowed to this extent, by way of remand. 7. We note that the Original Authority has to examine the applicability of the tax entry for construction of complex service/works contract service. On perusal of the factual details in the contract as well as the approved layouts, availability of common facilities etc as required by the tax entry is to be examined. It is clear that in case of compos .....

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