Sunday, February 23, 2014

No ST on construction of self-contained buildings, wherein each building was having 12 dwelling units

Sri Surya Rama Constructions
Commissioner of Central Excise, Customs & Service Tax, Visakhapatnam*
[2014] 41 349 (Bangalore - CESTAT)
Relevant part of the case law is given below:-

3. On a perusal of the records and hearing both sides, we find that the first item of demand pertains to residential complexes constructed by the appellant for the Government of Andhra Pradesh. Each building consists of 12 dwelling units. There are several such buildings constructed by the appellant in the same place for the Government. The question arises as to whether service tax under the above head can be levied at all and collected (sic) from the appellant inasmuch as each building which was constructed with self-contained facilities consists of only 12 dwelling units. On a similar issue, waiver and stay were granted by this Bench in the case of another assessee vide Stay Order No. 1089/2012 dated 26-6-2012 in Appeal No. ST/1806/2011 Sai Teia Constructions v. CCE.
5. On the above basis, after considering the submissions of both sides, we grant waiver and stay as prayed for.