Summary
- The CESTAT Chandigarh has ruled that Silver City Construction Ltd. is not liable for service tax on flats sold after construction, overturning a prior demand from the Central Excise Department.
- The Tribunal found that the construction of residential apartments constituted self-service, as ownership remained with the builder until sale deeds were executed.
- This decision relied on CBEC Circular No. 108/2/2009-ST and previous Tribunal rulings, clarifying that advances received do not equate to taxable services.
- The ruling is significant for builders regarding service tax implications on projects completed before ownership transfer, particularly under the pre-July 2010 legal framework.
Join the discussion ā sign up to comment, upvote, and save articles.