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2019 (12) TMI 123

..... re for personal use of the employees of the organizations on payment of rent and therefore the said quarters were for personal use and therefore the construction activity undertaken by the appellant was not for construction of residential complex - burden to prove - HELD THAT:- As per provision of law the ultimate use of the constructed residential unit is having bearing of levy of service tax. The law has very clearly provided that if the residential unit is intended for personal use or it is being used by other persons on rent then such unit is not covered by the definition of residential complex and therefore not eligible to be subjected to levy of service tax under construction of residential complex service. Further, this being a case .....

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..... nducted on the records of the appellant it appeared to Revenue the appellants were required to pay service tax on providing said service of construction of quarters for the Ministry of Defense and Gautam Budh University under the category of construction of residential complex service. Therefore appellants were issued with a show cause notice dated 20.10.2011 raising a demand of service tax of around ₹ 1.77 crore for the period from 2006-2007 to 2009-2010 in respect of construction for said residential quarters. Initially the demand was confirmed and penalties were imposed through an Order-In-Original dated 26.03.2013. The same was challenged before this Tribunal and this tribunal through Final Order No. ST/A/71739/2018 dated 02.08.20 .....

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..... warded to the appellant who constructed the said residential quarters during the period from 2006-2007 to 2009-2010. She has further submitted that all the quarters constructed by the appellant were for personal use of the organizations such as Ministry of Defence and Gautam Budh University. She has further submitted that residential complex has been defined under Finance Act, 1994 and as per said definition if the structure is constructed for intention of personal use then the same is not covered by the definition of residential complex. She has further submitted that the Act has also defined what is personal use and personal use includes permitting the structure for use as residence by another person on rent or without consideration. She .....

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..... as follows:- We have already explained the submission of learned advocate in brief and as explained by him in this case, residential complex constructed by the appellant is meant for use by the Income Tax department to provide the same on rent to the employees and therefore, it is clearly covered by the explanation given for Personal use in the definition. In this case the CPWD has engaged the appellant for construction of residential complex for giving it on rent to the employees of Income Tax department and therefore this service cannot be included in the definition of residential complex services. It is basically the case of one department taking the help of another department to get the work done basically because of specialization of t .....

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