No Service Tax on Post-Occupancy Flat Sales: CESTAT

CESTAT held that no service tax is applicable on the sale of flats after obtaining the occupancy certificate. The tribunal reasoned that once an occupancy certificate is issued, the transaction is considered a sale of immovable property, which is outside the purview of service tax. Service tax typically applies to services rendered during the construction phase. This ruling provides clarity to developers and homebuyers regarding the tax implications of post-occupancy sales of residential properties.