No Service Tax Leviable on Construction of Complex Service for construction of houses under JnNURM : CESTAT [Raed Order]

The Ahmedabad bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that Service Tax not leviable on construction of complex service  under Section 65(91a) of the Finance Act, 1994 for construction of houses under Jawaharlal Nehru National Urban Renewal Mission (JnNURM ).

 The question is that whether Rjp Infrastructure Pvt Limited the appellant is liable to pay service tax under the category of Construction of Complex service for the service related to construction of houses under Jawaharlal Nehru National Urban Renewal Mission (JnNURM) and for SafaiKamdar to Ahmedabad Municipal Corporation or otherwise.

Shri Amal Dave,Counsel appearing on behalf of the appellant, at the outset submitted that the issue is no longer res-integra as in various judgments it has been held that construction of Complex under the identical schemes is not liable for service tax.

On the other hand Shri Tara Prakash, Deputy Commissioner (AR) appearing on behalf of the Revenue reiterated the findings of the impugned order.

 It was evident from the Section 65(91A) of Finance Act, 1994, that the complex which is constructed with an intention for personaluse as residence by a person who is directly engaging any other person for designing/planning of layout and the construction of such complexes out of the ambit of such construction and thus from taxability.

In view of the various judgments, the two member bench comprising Ramesh Nair, Member (Judicial) and C L Mahar, Member (Technical) observed that in respect of construction service provided to the service recipient M/s. GSPHCL and Surat Municipal Corporation under Jawaharlal Nehru National Urban Renewal Mission are non-taxable. While allowing the appeal, the CESTAT set aside the impugned order.

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