ARIHANT CONSTRUCTION Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellants were registered for rendering the services of construction of complex. They constructed several quarters for Kendriya Vidyalaya. These residential quarters were distributed in different buildings in the same compound. None of the buildings had more than 12 flats in each building. However, Revenue was of the view that the word 'complex' has to be interpreted to mean the entire compound and if the entire compound is considered as one complex, there were 17 flats constructed in the complex and therefore, they had to pay service tax under the entry of construction of complexes. A show cause notice was issued and adjudicated confirming duty to the extent of Rs. 2,47,598/ - along with interest and penalties under Sections 76 and 78. The submission of the Counsel is that as per the definition of 'residential complex' as given at sub -section (91a) of Section 65, only building having more than 12 residential units in a building will be considered a residential complex. He submits that this issue was under dispute and it was decided by the Tribunal in the case of Macro Marvel Projects Ltd. v. CST, Chennai [ : 2008 (12) S.T.R. 603 (Tri. -Che)] holding that only those buildings of more than 12 residential units in the same building will be covered by the definition of residential complex. Revenue being aggrieved by the said decision, had filed an appeal with the Hon'ble Supreme Court and the same was dismissed by the Supreme Court as reported at, 2012 (25) S.T.R. J154. Therefore, the Counsel submits that there is no merit in the arguments of Revenue and appeal should be heard without any pre -deposit.

(2.) Learned AR for Revenue is reiterating the submissions which were argued in the case of Macro Marvel Projects, that is the compound of Kendriya Vidyalaya has to be taken as one complex and in this complex, the appellants have constructed more than 12 residential units and therefore, the complex will be covered by the definition at 65(91a) inasmuch as, approval was given by CPWD and Ministry of Human Resources Development for the complex as a whole. He also draws our attention to Explanation -I under sub -section (91a) which defined 'residential unit' stating the residential unit for a single unit for a single apartment for the place.

(3.) WE have considered arguments of both sides. The definition of residential complex reads as under: