2018 (9) TMI 916 – CESTAT HYDERABAD – TMI – Liability of Service tax – amount calculated of the share of the land owners in the developed property – case of the appellants before the lower authorities that the value of the services rendered to the land owners is already built on the amounts charged by them to independent flat owners – Held that:- Identical issue decided in the case of VASANTHA GREEN PROJECTS VERSUS CCT, RANGAREDDY GST [2018 (5) TMI 889 – CESTAT HYDERABAD], where it was held that the amount attributable to the consideration received by appellant in the form of land rights from the land owner stands included in the value of villas sold to prospective customer which would mean that whatever consideration was received by the a
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2. Heard both sides and perused the records. 3. On perusal of records, it transpires that the issue in all these three appeals is regarding the service tax liability on these appellants on the land owner's share i.e., on construction of flats. Appellants herein entered into agreement with land owners for the construction/development of the land; the land owners gave developmental rights to appellants herein on an understanding and an agreement that after the development of the land as desired appellants will hand over 40% of the developed residential apartments built by them. The appellants herein discharged the service tax liability on the flats sold by them to 3rd parties, they had not discharged the service tax liability on the amou
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(one of us M.V. Ravindran was member therein) held as under: 12. It can be seen from the above said instructions, the gross amount charged by the builder is liable to tax. The said instructions are in force till today and has not been withdrawn by the Board. As already detailed herein above, the appellant has discharged the service tax liability on the gross amount charged i.e. consideration received from land owners in the form of kind other than cash (value of the land/development rights) + Consideration received from prospective buyers in cash by way of financial arrangements on the construction services undertaken by the appellant on joint development basis. We also note that appellant had declared the same in the books of accounts lik
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