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April 2012

(2012) 25 STR J 157 (Tri.-Chennai) — Macro Marvel Projects Ltd. v. CST.

By Puloma Dalal, Jayesh Gogri
Chartered Accountants
Reading Time 1 mins
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Service tax — Construction of complex service — Construction of individual houses is not taxable under ‘construction of complex service’ or under ‘works contract’.

Facts:
The appellants constructed individual residential houses, each being a residential unit. The appeal was against demand of service tax under the head ‘construction of complex’ service. The demand was on the amount collected by the appellants from their clients as consideration for construction and transfer of residential houses.

Held:
The construction of residential complex having not more than 12 residential units was not sought to be taxed under the Finance Act, 1994. For the levy, it should be a residential complex comprising more than 12 residential units. Hence the construction of individual residential units was not subject to levy of service tax.

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