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TMI Blog2020 (11) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... ent under construction of residential complex service and commercial use or exploitation of any event service. They entered into joint development agreement with owners of residential plots to construct residential building complexes. As per the agreement the land owner gives the land to the project; the appellant constructions flats on them and gives some flats to the land owner and sells the rest. Thus, there is no cost of land is paid by the appellant to the land owner and the land owner does not pay anything for the flats given by the builder. The builder, of course, receives payment when he sells flats to home buyers and has been paying service tax on such amounts. The appellant has not been paying service tax on the land owner's porti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e flats including the services rendered on their construction gets subsumed in the value of the builder's share of the flats which are sold by the builder. In their case, they have already paid service tax on the builder's share of flats. He relies on the decision of this bench in the case of Vasantha Green Projects [2018 (5) TMI 889 - CESTAT HYDERABAD] and PNR Infra India Pvt Ltd [2018 (12) TMI 1243 - CESTAT HYDERABAD]. In both these orders, it has been held that the value of the builder's share of the flats is the total value of the project and which the service provider receives. This amount includes the value of land, the value of materials and the services rendered. By taxing the builder's share of the flats, in effect, the entire proj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax) Rules, 2007; Rule 3 of which reads as follows: "Rule 3:- (1) Notwithstanding anything contained in section 67 of the Act and rule 2A of the Service (Determination of Value) Ru1es, 2006, the person liable to pay service tax in relation to works contract service shall have the option to discharge his service tax liability on the works contract service provided or to be provided, instead of paying service tax at the rate specified in section 66 of the Act, by paying an amount equivalent to two per cent of the gross amount charged for the works contract." 7. It is evident from the above that the composition scheme is an option given to the assessee and this can only be resorted to when the assessee opts for it and they have not opted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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