Service Tax
TRT-2025-
Cestat Ahmedabad
Date:-22-12-22
In:-
Issue Favourable to Tax Payer ?:-
Order date – 22 December 2022
Facts –
- The Appellant, M S Khurana Engineering Limited were engaged in the business of construction of residential Complex services under Jawaharala Nehru National Urban Renewal Mission (JnNURM) which falls under the category of “Construction of Complex Service” which were taxable up to 01.07.2010.
- A show cause notice was issued demanding Service tax on the same for the period 01.04.2006 to 30.06.2010 along with interest and penalty.
Issue –
- Whether the construction of residential Complex services under JnNURM is taxable or not?
Order –
- The Tribunal held that as per Section 65(91a) of the Finance Act, 1994, the complex which is constructed with an intention for personal use 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 the present case, the quarters/residential complexes were got constructed by the AMC and AUDA for urban poor people for their residential use, the same amounts to “personal use‟. The confirmation of demand qua these services by the Commissioner is therefore not sustainable.
- Hence the appeal is allowed.
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