No Service Tax liability when the construction of flat is for the personal use of the service recipient

Last updated: 11 May 2023

Court :
CESTAT, Chennai

Brief :
The CESTAT, Chennai in M/s. Rani Meyyammai Towers v. Commissioner of Service Tax[Final Order No. 40307-40308 of 2023 dated April 26, 2023] has set aside the order demanding Service Tax on construction of flats under the category of Construction of Complex Service ("CC Services"). Held that, projects executed prior to June 01, 2007, which were in the nature of composite works contract, could not be brought within the fold of commercial or industrial construction service or CC services and for the period post June 01, 2007, the liability to pay Service Tax could be fastened under CC services only if the activities were in the nature of service simpliciter. Further held that, there is no Service Tax liability as and when the construction of flat is for the personal use of the service recipient.

Citation :
[Final Order No. 40307-40308 of 2023 dated April 26, 2023]