Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Informative
Service Tax Demand on Landowner Shares in Residential Complex under Construction Deemed Unsustainable: CESTAT [Read Order]
Excise, VAT & Custom
The Chennai bench of CESTAT deemed service tax demand on landowner shares in an under-construction residential complex as unsustainable. M/s. Srivari Property Developers, engaged in construction services, faced scrutiny for not paying service tax on projects with 12 or fewer units. While projects with more units required tax payment, the appellant hadn't paid tax on landowner shares. \r
Despite confirmation by the original authority and Commissioner (Appeals), the tribunal found the demand unjustified. It ruled that pre-June 2007, Works Contract Services (WCS) applied to composite contracts, not Residential Complex Services. \r
Referring to precedent cases, including Srinivasa Shipping & Property Developers Ltd., the bench overturned the order, asserting the demand under residential complex services was unsustainable. The appeal was granted.
