TMI Blog2018 (4) TMI 1339X X X X Extracts X X X X X X X X Extracts X X X X ..... various judgments particularly in the case of Kumar Beheray Rathi vs. CCE, Pune-III [2013 (12) TMI 269 - CESTAT MUMBAI], where it was held that the maintenance charges collected from the flat owner under the obligation as per the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963, the same will not be chargeable to tax in the hands of the builder. Appeal dismissed - decided against Revenue. - ST/89398/2014 - A/85960/2018 - Dated:- 11-4-2018 - Mr. Ramesh Nair, Member (Judicial) and Mr. C.J. Mathew, Member (Technical) Shri Dilip Shinde, Assistant Commissioner (AR), for appellant None for respondent ORDER Per: Ramesh Nair The facts of the case are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, the service is clearly taxable under maintenance or repair service. He placed reliance on the judgment of the Tribunal in the case of Satya Prakash Builders Pvt. Ltd. vs. CCE, Jaipur-I 2017 (4) GSTL 393 (Tri.-Del.). 3. None appeared on behalf of the respondent. 4. On careful consideration of the submissions made by the learned AR, we find that as per the facts of the case, the respondent is collecting repair and maintenance charges under the statutory obligation provided in Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963. The respondent is under the obligation of the said Act, collecting the maintenance charges from the dwelling unit owner and transferring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cks. 6.2 We have also gone through the relevant provisions of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963. We find that the Sections 5 and 6 provides as under :- SECTION 05 : PROMOTER TO MAINTAIN SEPARATE ACCOUNT OF SUMS TAKEN AS ADVANCE OR DEPOSIT AND TO BE TRUSTEE THEREFOR; AND DISBURSE THEM FOR PURPOSES FOR WHICH GIVEN The promoter shall maintain a separate account in any bank of sums taken, by him, from persons intending to take or who have taken flats, as advance or deposit including any sums so taken towards the share capital for the formation of co-operative society or a company, or towards the outgoings (including ground rent, if any, municipal or ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is clear that under the Act the appellants are obliged to maintain a separate account in any bank of the deposits taken and use the same amount towards the outgoings. Further Section 6 puts responsibility for payment of outgoings on the appellants till the property is transferred. 6.3 We also note that at the relevant time the provisions of Finance Act are as under :- Maintenance or repair means any service provided by - (a) any person under a contract or an agreement; or (b) a manufacturer or any person authorized by him in relation to - (i) maintenance or repair including reconditioning or restoration, or servicing of any goods or equipment, excluding motor vehicle; or (ii) maintenance or management of immovable pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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