2024-VIL-1640-CESTAT-AHM-ST
  1. Home
  2. 2024-VIL-1640-CESTAT-AHM-ST

SERVICE TAX CESTAT Cases

Service Tax - Construction of complex or Works contract, Valuation - Appellant is engaged in providing construction of complex services to potential buyers and owns the land being developed for residential purposes - Whether the service tax is liable to be paid by the Appellant under the category of "construction of complex" service or under the taxable category of "works contract" services - HELD - the activity of the Appellant is classifiable under the taxable category of "works contract" services and not "construction of complex" services. Relying on the decision of the Supreme Court in Larsen & Toubro Ltd. Vs. State of Karnataka and the Tribunal's own precedents, the agreements between the builder and the buyers for construction of residential units against payments in installments during construction would be treated as works contracts - the abatement available for "construction of complex" services itself indicates that the contracts are composite in nature and would be classifiable as "works contract services". Thus, the demand of service tax under the category of "construction of complex" services is not sustainable – appeal is allowed - Whether the value of land can be included in the value of works contract services for levy of service tax – HELD - the value of land cannot be included in the value of works contract services for levy of service tax. Relying on the principles laid down by the Supreme Court in Commissioner, Central Excise & Customs versus M/s Larsen & Toubro Ltd. and Others, the Tribunal observed that the measure of service tax can only be on that portion of works contracts which contain a service element and the value of property in goods transferred in the execution of the works contract has to be excluded - the value of land is identified in the agreement and is clearly discernible, therefore, the measure of levy has to be divisible in nature.
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

GST Video

Decisions of 55th GST Council Meeting
By Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?