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2024 (5) TMI 760 - CESTAT CHENNAIDemand of Interest - appellant has paid the service tax from July 2010 onwards though belatedly - construction of residential complex and sale thereon - period from April 2009 to June 2010 - HELD THAT:- The Board vide circular No.108/02/2009 dt. 29.1.2009 has clarified that a builder/promoter/developer is not liable to pay service tax prior to 1.7.2010. The said issue has been decided by the Tribunal in the case of Krishna Homes [2014 (3) TMI 694 - CESTAT AHMEDABAD]. In the said case, the Tribunal has applied Board’s circular and discussed the very same issue after taking note of the Explanation introduced in Section 65 (105) (zzzh) of the Finance Act, 1994. The Board has specifically stated that developer/builder/promoter would be liable to pay service tax only after 1.7.2010. The demand of service tax for the period prior to July 2010 cannot sustain and requires to be set aside - For the period after July 2010 to March 2011 the appellant has paid the service tax though belatedly the impugned order has confirmed the demand of interest for the said period. The appellant is liable to pay the same. The impugned order is set aside to the extent of demand of service tax, interest thereon and penalties for the period upto 1.7.2010 - the interest demand confirmed for the period after 1.7.2010 not disturbed - appeal allowed in part.
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