{"id":8722,"date":"2026-04-17T17:06:37","date_gmt":"2026-04-17T11:36:37","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=8722"},"modified":"2026-04-18T11:07:22","modified_gmt":"2026-04-18T05:37:22","slug":"no-service-tax-on-construction-for-personal-use-cestat","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/no-service-tax-on-construction-for-personal-use-cestat","title":{"rendered":"No Service Tax on Construction for Personal Use | CESTAT"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/101010000000416225\/no-service-tax-on-construction-services-if-it-was-in-relation-to-personal-use-of-individuals-cestat\">Aliens Group Infra Pvt. Ltd. vs. Pr. Commissioner of Central Tax, Rangareddy - GST, Hyderabad (2026) 39 Centax 148 (Tri.-Hyd)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>S\/Shri Angad Prasad,<\/strong> Member (J) &amp; <strong>A.K. Jyotishi,<\/strong> Member (T)<\/li>\n<li><strong>Shri Lakshman Kumar,<\/strong> CA, for the Appellant.<\/li>\n<li><strong>Shri K. Raji Reddy,<\/strong> AR, for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The appellant sold an undivided share of land along with semi-constructed flats on which stamp duty was paid. As provided in the sale agreement, separate construction or completion agreements were entered into with each buyer for finishing the flats. A show cause notice (SCN) and order-in-original (OIO) confirmed demand under the construction of residential complexes service (CRCS) for the period April 2008 to March 2012, treating the activity as composite in nature. The appellant asserted that the activity was properly classifiable under works contract service with effect from 01-06-2007. It was contended that classification under CRCS was unsustainable. It was further contended that the construction undertaken for different individuals was for personal use and fell within the exclusion under the definition of residential complex. The matter was accordingly placed before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).<\/p>\n<h2><em>CESTAT Held<\/em><\/h2>\n<p>The CESTAT held that disputes on classification and leviability existed during the relevant period in light of Board clarifications issued in 2009 and 2012. It held that the activity beyond 01-07-2010 fell under works contract service and not under CRCS. It further held that an SCN issued under an incorrect classification could not be sustained in law. The Tribunal also held that the appellant had established that the construction was in relation to the personal use of individuals. Accordingly, it was held that the levy of service tax did not arise.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li>Alpine Estates v. Commissioner \u2014 Final Order No. A\/30359\/2023, dated 18-9-2023 CESTAT Hyderabad \u2014 Referred [Para 6]<\/li>\n<li>Commissioner v. CSK Realtors Ltd 2024 (3) TMI 351 \u2014 Followed [Paras 4, 11]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2012%20(27)%20S.T.R.%20225%20(Kar.)&amp;itemType=AP\">Commissioner v. Motor World<\/a> \u2014 2012 (27) S.T.R. 225 (Kar.) \u2014 Referred [Para 6]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2019%20(31)%20G.S.T.L.%20241%20(Tri.-Hyd)&amp;itemType=AP\">Commissioner v. Pragathi Edifice Pvt Ltd<\/a> \u2014 2019 (31) G.S.T.L. 241 (Tri.-Hyd) \u2014 Followed [Paras 3, 9]<\/li>\n<li>Greewood Estates v. CCT \u2014 2024 (3) TMI 563 \u2014 Followed [Paras 4, 11]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2013%20(32)%20S.T.R.%20427%20(Tri.-Bom)&amp;itemType=AP\">ICC Reality &amp; Others v. CCE<\/a> \u2014 2013 (32) S.T.R. 427 (Tri.-Bom) \u2014 Referred [Para 5]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2021%20(52)%20G.S.T.L.%20304%20(Tri.%20-%20Hyd.)&amp;itemType=AP\">IVRCL Assets and Holdings Ltd v. Commissioner<\/a> \u2014 2021 (52) G.S.T.L. 304 (Tri. &#8211; Hyd.) \u2014 Followed [Paras 4, 11]<\/li>\n<li>Karnataka Trade Promotion Organisation v. CST \u2014 2016-TIOL-1783-Tri.-Bang. \u2014 Referred [Para 6]<\/li>\n<li>Kolla Developers &amp; Builders v. CCE \u2014 2018 (11) TMI 164 \u2014 Followed [Paras 3, 9]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2014%20(34)%20S.T.R.%20881%20(Tri.-Del)&amp;itemType=AP\">Krishna Homs v. Commissioner<\/a> \u2014 2014 (34) S.T.R. 881 (Tri.-Del) \u2014 Followed [Paras 3, 9]<\/li>\n<li>Mehta &amp; Modi Homes v. CCT \u2014 2019 (2) TMI 476 \u2014 Followed [Paras 3, 9]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2021%20(45)%20G.S.T.L.%20398%20(Tri.-Hyd)&amp;itemType=AP\">Modi &amp; Modi Constructions v. Commissioner<\/a> \u2014 2021 (45) G.S.T.L. 398 (Tri.-Hyd) \u2014 Followed [Paras 4, 11]<\/li>\n<li>Modi Ventures v. CCT \u2014 2020 (3) TMI 1481 \u2014 Followed [Paras 3, 9, 11]<\/li>\n<\/ul>\n<h2><em>List of Departmental Clarification Cited<\/em><\/h2>\n<ul>\n<li>C.B.E. &amp; C Circular No.108\/2\/2009-ST, dated 29-1-2009 [Paras 2, 10]<\/li>\n<li>C.B.E. &amp; C Circular No.151\/2\/2012-ST, dated 10-2-2012 [Paras 4, 10]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Aliens Group Infra Pvt. Ltd. vs. Pr. Commissioner of Central&hellip;<\/p>\n","protected":false},"author":19,"featured_media":8746,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,63],"tags":[],"class_list":["post-8722","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":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>No Service Tax on Construction for Personal Use | CESTAT<\/title>\n<meta name=\"description\" content=\"CESTAT rules no service tax on construction for personal use; incorrect classification under CRCS unsustainable, works contract applies.\" \/>\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\/no-service-tax-on-construction-for-personal-use-cestat\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"No Service Tax on Construction for Personal Use | CESTAT\" \/>\n<meta property=\"og:description\" content=\"CESTAT rules no service tax on construction for personal use; 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