Goel Nitron Constructions v. Commissioner of Central Excise, Pune-III (ORDER NOS. A/2262-2264/2015/STB)
Summary of Decision :-
It has been held that the appellant are not in the business of maintenance and repair or management of immovable property. They are collecting one time maintenance charges from their buyers to whom they have sold the flats. They are only paying on behalf of various buyers (as trustees) of flats to various authorities like, Municipal Corporation, Revenue authorities, etc. and also various services providers such as cleaning and other service providers, etc. and they are not charging anything on their own. The payments are made on cost basis and the same is debited from the deposit accounts held. The builders/developer act only as a trustee. When the co-operative society of flat owners is formed, even the deposit account is shifted to flat owners co-operative housing society , which is a statutory obligation on the appellant in terms of Sections 5 & 6 of the Maharashtra Ownership Flats Act, 1963. Accordingly, it cannot be held that the repair and maintenance services were rendered.
Refer: https://taxheal.com/one-time-maintenance-charges-collected-from-buyers-not-liable-for-service-tax.H T M L