The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), observed that the service tax is not leviable on service of “Construction of Residential Complex” provided to Surat Municipal Corporation under the Jawaharlal Nehru National Urban Renewal Mission.
The issue involved in the present case is that whether the appellant, Malani Construction Co, is liable to pay the service tax under the head of “Construction of Residential Complex” provided to Surat Municipal Corporation under the Jawaharlal Nehru National Urban Renewal Mission.
Vikas Mehta, Consultant appearing on behalf of the appellant at the outset submitted that the issue is no longer res-integra as the same has been decided in favour of the assessee.
Kalpesh P Shah, Assistant Commissioner (AR) appearing on behalf of the Revenue reiterated the finding of the impugned order.
Notification No. 28/2010-S.T., dated 22nd June, 2010, clarified that the services is provided to Jawaharlal Nehru National Urban Renewal Mission and Rajiv Awaas Yojana are exempted from the clutches of Service Tax. Further, vide F. No. 137/26/206-CX.-4, dated 5th July, 2006, it was clarified that Service Tax would not be leviable on construction of complexes under question if their lay out does not require approval by an authority under any law for the time being in force.
Residential Complex has been defined under section 65(91a) of the Finance Act as follows :- residential complex means any complex comprising of – (i) a building or buildings, having more than twelve residential units; (ii) a common area; and (iii) any one or more of facilities or services such as park, lift, parking spaces community hall, common water supply or effluent treatment system, located within a premises and the layout of such premises is approved by an authority under any law for the time being in force, but does not include a complex which is constructed by a person directly engaging any other person for designing or planning of the layout, and the construction of such complex is intended for personal use as residence by such person.
A Two-Member Bench of the Tribunal comprising Ramesh Nair, Judicial Member and CL Mahar, Technical Member observed that “The service provided to the service recipient namely Surat Municipal Corporation under Jawaharlal Nehru National Urban Renewal Mission are not taxable.”
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