Apartment Sale Amount Exceeds Value in Sale Deed: CESTAT Directs Verification of Completion Certificate [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Hyderabad Bench, heard a matter wherein the apartment sale amount was allegedly exceeding the value in sale deed. CESTAT directed for verification of the completion certificate.

The appellants, M/s Nagarjuna Homes, are rendering services under the category of construction of residential complex service. The department, based on verification of certain documents, felt that the appellants have received an amount of Rs. 7,30,33,885/- towards sales of flats during 2011-12. It was alleged that they had received more than sale deed value because of the actual construction not being completed.

The counsel for the appellants contested that the payment had been made post the issuance of completion certificate by the Competent Authority.

The tribunal observed that the completion certificate relied upon has not been issued by the GHMC and rather by local authorities. CESTAT also observed that the payments were made at a later date than the issuance of completion certificate, however authentic it may have been. The bench directed the appellant to produce a detailed certificate from Chartered Accountant in support that all these payments were received and reflected in the books of account post issuance of completion certificate.

The two member bench of A.K. Jyotishi (Technical Member) and Angad Prasad (Judicial Member) directed the matter to be remanded back to the Original Authority who shall verify the details including the competition certificate. Three months time was given to follow through this direction and the appeal stood allowed by way of remand.

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