{"id":5878,"date":"2025-09-12T17:37:08","date_gmt":"2025-09-12T12:07:08","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=5878"},"modified":"2025-09-12T17:37:08","modified_gmt":"2025-09-12T12:07:08","slug":"construction-agreements-with-landowners-are-works-contract-sc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc","title":{"rendered":"Construction Agreements With Landowners Are Works Contract | SC"},"content":{"rendered":"
Case Details: Commissioner of Central Excise Bengaluru Service Tax-I Versus Confident Projects Pvt. Ltd.<\/span> (2025) 34 Centax 109 (S.C.)<\/span><\/span>\u00a0<\/span><\/a><\/strong><\/pre>\n
Judiciary and Counsel Details<\/em><\/h2>\n
    \n
  • J.B. Pardiwala<\/strong>\u00a0& R. Mahadevan<\/strong>, JJ.<\/li>\n
  • S\/Shri Arijit Prasad<\/strong>, Sr Adv., N. Venkataraman<\/strong>, A.S.G., Ms Arushi Singh<\/strong>, Yashraj Bundela<\/strong>, Ms Mili Baxi<\/strong>, Akshay Amritanshu<\/strong>, Advs., Gurmeet Singh Makker<\/strong>, AOR, for the Petitioner<\/li>\n<\/ul>\n
    Facts of the Case<\/em><\/h2>\n
    The Appellant, a builder\/developer, undertook construction of projects by entering into construction agreements with prospective buyers\/owners of undivided portions of land for the construction of flats or villas, with payment structured in instalments. The Appellant submitted that such transactions constitute a \u2018Works Contract\u2019 service and contended that they were eligible for the composition scheme under the Works Contract (Composition Scheme for payment of Service Tax) Rules, 2007. The <\/span>CESTAT<\/span> had previously held that the activity falls within the \u2018Works Contract\u2019 service category and that the Appellant is entitled to the benefits of the composition scheme. The Appellant further relied on the provisions of Section 35L of the Central Excise Act, 1944, as made applicable to service tax under Section 83 of the Finance Act, 1994. The matter was accordingly placed before the Supreme Court.<\/span><\/span>\u00a0<\/span><\/p>\n
    Supreme Court Held<\/em><\/h2>\n
    The Hon\u2019ble Supreme Court held that the construction of projects undertaken by the Appellant under agreements with prospective buyers\/owners of undivided portions of land, for the construction of flats or villas on payment in instalments, constitutes a \u2018Works Contract\u2019 service. The Court affirmed that the Appellant is eligible for the composition scheme as per the Works Contract (Composition Scheme for payment of Service Tax) Rules, 2007. The appeal against the CESTAT order was dismissed on the grounds of delay as well as merit, with the Court finding no reason to interfere with the CESTAT\u2019s determination.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"
    Case Details: Commissioner of Central Excise Bengaluru Service Tax-I Versus Confident Projects…<\/p>\n","protected":false},"author":16,"featured_media":5916,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,63],"tags":[],"class_list":["post-5878","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excise-service-tax","category-news-excise-service-tax","category-est-case-chronicles"],"yoast_head":"\nConstruction Agreements With Landowners Are Works Contract | SC<\/title>\n<meta name=\"description\" content=\"SC held that construction agreements with landowners qualify as works contract under law, making assessee eligible for composition scheme benefit.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Construction Agreements With Landowners Are Works Contract | SC\" \/>\n<meta property=\"og:description\" content=\"SC held that construction agreements with landowners qualify as works contract under law, making assessee eligible for composition scheme benefit.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc\" \/>\n<meta property=\"og:site_name\" content=\"Centax-Blogs\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/centaxindia\" \/>\n<meta property=\"article:published_time\" content=\"2025-09-12T12:07:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/09\/1.-Construction-Agreements-With-Landowners-Are-Works-Contract-SC.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"920\" \/>\n\t<meta property=\"og:image:height\" content=\"540\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Koyna Goswami\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Koyna Goswami\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc\"},\"author\":{\"name\":\"Koyna Goswami\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/969e369d040b346ae1be58ac6cdd103a\"},\"headline\":\"Construction Agreements With Landowners Are Works Contract | SC\",\"datePublished\":\"2025-09-12T12:07:08+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc\"},\"wordCount\":284,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/09\/1.-Construction-Agreements-With-Landowners-Are-Works-Contract-SC.jpg\",\"articleSection\":[\"Excise & Service Tax\",\"News\",\"Case Chronicles\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc\",\"name\":\"Construction Agreements With Landowners Are Works Contract | SC\",\"isPartOf\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/09\/1.-Construction-Agreements-With-Landowners-Are-Works-Contract-SC.jpg\",\"datePublished\":\"2025-09-12T12:07:08+00:00\",\"description\":\"SC held that construction agreements with landowners qualify as works contract under law, making assessee eligible for composition scheme benefit.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc#primaryimage\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/09\/1.-Construction-Agreements-With-Landowners-Are-Works-Contract-SC.jpg\",\"contentUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/09\/1.-Construction-Agreements-With-Landowners-Are-Works-Contract-SC.jpg\",\"width\":920,\"height\":540,\"caption\":\"Ind AS on Revenue Recognition for Variable Construction Contracts\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.centaxonline.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Construction Agreements With Landowners Are Works Contract | SC\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#website\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/\",\"name\":\"Centax-Blogs\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.centaxonline.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#organization\",\"name\":\"Centax-Blogs\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp\",\"contentUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp\",\"width\":536,\"height\":133,\"caption\":\"Centax-Blogs\"},\"image\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/centaxindia\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/969e369d040b346ae1be58ac6cdd103a\",\"name\":\"Koyna Goswami\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/8e66b12eb5198403b3252951dae8e25f?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/8e66b12eb5198403b3252951dae8e25f?s=96&d=mm&r=g\",\"caption\":\"Koyna Goswami\"},\"url\":\"https:\/\/www.centaxonline.com\/blog\/author\/koyna\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Construction Agreements With Landowners Are Works Contract | SC","description":"SC held that construction agreements with landowners qualify as works contract under law, making assessee eligible for composition scheme benefit.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc","og_locale":"en_US","og_type":"article","og_title":"Construction Agreements With Landowners Are Works Contract | SC","og_description":"SC held that construction agreements with landowners qualify as works contract under law, making assessee eligible for composition scheme benefit.","og_url":"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc","og_site_name":"Centax-Blogs","article_publisher":"https:\/\/www.facebook.com\/centaxindia","article_published_time":"2025-09-12T12:07:08+00:00","og_image":[{"width":920,"height":540,"url":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/09\/1.-Construction-Agreements-With-Landowners-Are-Works-Contract-SC.jpg","type":"image\/jpeg"}],"author":"Koyna Goswami","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Koyna Goswami","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc#article","isPartOf":{"@id":"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc"},"author":{"name":"Koyna Goswami","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/969e369d040b346ae1be58ac6cdd103a"},"headline":"Construction Agreements With Landowners Are Works Contract | SC","datePublished":"2025-09-12T12:07:08+00:00","mainEntityOfPage":{"@id":"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc"},"wordCount":284,"commentCount":0,"publisher":{"@id":"https:\/\/www.centaxonline.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc#primaryimage"},"thumbnailUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/09\/1.-Construction-Agreements-With-Landowners-Are-Works-Contract-SC.jpg","articleSection":["Excise & Service Tax","News","Case Chronicles"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc","url":"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc","name":"Construction Agreements With Landowners Are Works Contract | SC","isPartOf":{"@id":"https:\/\/www.centaxonline.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc#primaryimage"},"image":{"@id":"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc#primaryimage"},"thumbnailUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/09\/1.-Construction-Agreements-With-Landowners-Are-Works-Contract-SC.jpg","datePublished":"2025-09-12T12:07:08+00:00","description":"SC held that construction agreements with landowners qualify as works contract under law, making assessee eligible for composition scheme benefit.","breadcrumb":{"@id":"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc#primaryimage","url":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/09\/1.-Construction-Agreements-With-Landowners-Are-Works-Contract-SC.jpg","contentUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/09\/1.-Construction-Agreements-With-Landowners-Are-Works-Contract-SC.jpg","width":920,"height":540,"caption":"Ind AS on Revenue Recognition for Variable Construction Contracts"},{"@type":"BreadcrumbList","@id":"https:\/\/www.centaxonline.com\/blog\/construction-agreements-with-landowners-are-works-contract-sc#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.centaxonline.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Construction Agreements With Landowners Are Works Contract | SC"}]},{"@type":"WebSite","@id":"https:\/\/www.centaxonline.com\/blog\/#website","url":"https:\/\/www.centaxonline.com\/blog\/","name":"Centax-Blogs","description":"","publisher":{"@id":"https:\/\/www.centaxonline.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.centaxonline.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.centaxonline.com\/blog\/#organization","name":"Centax-Blogs","url":"https:\/\/www.centaxonline.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp","contentUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp","width":536,"height":133,"caption":"Centax-Blogs"},"image":{"@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/centaxindia"]},{"@type":"Person","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/969e369d040b346ae1be58ac6cdd103a","name":"Koyna Goswami","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/8e66b12eb5198403b3252951dae8e25f?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/8e66b12eb5198403b3252951dae8e25f?s=96&d=mm&r=g","caption":"Koyna Goswami"},"url":"https:\/\/www.centaxonline.com\/blog\/author\/koyna"}]}},"_links":{"self":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts\/5878","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/comments?post=5878"}],"version-history":[{"count":3,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts\/5878\/revisions"}],"predecessor-version":[{"id":5914,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts\/5878\/revisions\/5914"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/media\/5916"}],"wp:attachment":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/media?parent=5878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/categories?post=5878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/tags?post=5878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}