TMI Blog2023 (12) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... hat appellant is liable to service tax only for the receipts received towards finishing of the unfinished flat(s) on or after the date of sale - it is further made clear that appellant is not liable to service tax on other receipts like-towards electricity installation, maintenance charges, towards maintenance security, etc. Thus, the appellant is only liable to service tax under WCS on the amount attributed to construction activity, after the agreement of sale/execution of sale deed. Learned Counsel has also clarified that in the impugned order learned Commissioner has given credit by way of appropriation for the amount of tax already paid i.e. Rs 34,32,328/-, which does not include the amount of CENVAT credit and also some challans, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of property in goods in execution of the said construction agreements, it appears that the services rendered by them after execution of sale deed against agreements of construction to each of their customers to whom the land was already sold are taxable services under Works Contract Service . From a plain reading of Para 2 of the show-cause notice, it is evident that there was no intention to tax the value of the unfinished Flat, which was sold on, as is where is basis, for agreed consideration. Revenue intended to tax the balance consideration towards finishing of flat after the date of sale. However, erroneously in the show-cause notice, service tax of Rs 1,23,37,565 was demanded on the value including the value of unfinished flat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal dated 31/8/2015, the learned Commissioner confirmed the proposed demand in the show-cause notice and also appropriated the amount already paid, i.e. Rs 34,32,328/-. along with interest and towards the penalty of 10% of the tax amount so demanded under Section 76. Another penalty of Rs 10,000/- was imposed under Section 77. 5. Being aggrieved, the appellant is before this Tribunal. Learned counsel urges that by no stretch of imagination, service tax can be demanded on the value of the unfinished flat sold, including the value of undivided share in land. Till the execution of sale deed between the parties, there was no agreement of service. The appellant builder was doing the construction on his own account, or in the nature of self-se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax payable to the extent of Rs 6,61,640/-. Accordingly, learned Counsel prays for allowing their appeal with consequential relief. Learned Counsel also relies on the precedent order of this Tribunal, in their own case, being Final Order No. 30699/2019, dated 19/06/2019, as modified and clarified by Miscellaneous Order No. M/30226/ 2022 dated 11/3/2022, wherein it has been held that the appellant is only liable to pay service tax only on the unfinished portion, as construction service rendered after the execution of sale deed. 6. Learned AR for Revenue relies on the impugned order. 7. Having considered the rival contentions and after perusal of records, we hold that the appellant is not liable to service tax on the value of the unfini ..... X X X X Extracts X X X X X X X X Extracts X X X X
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