| COURT: | Bombay High Court |
| CORAM: | M. S. Sanklecha J, Riyaz I. Chagla J |
| SECTION(S): | GST Act, Service-tax Act |
| GENRE: | Other Laws |
| CATCH WORDS: | GST Act, service-tax |
| COUNSEL: | Shyam Walve, Swapnil Bangur |
| DATE: | September 19, 2018 (Date of pronouncement) |
| DATE: | October 9, 2019 (Date of publication) |
| AY: | - |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| Service Tax/ GST: The collection of non-refundable deposits by the assessee from prospective flat buyers, for maintaining the building, does not result in the assessee providing management, maintenance or repair service as defined in Section 65(105)(zzg) of Finance Act 1994 | |
The service of maintenance, management or repair, rendered by any person to any other person is a taxable service but in the context and backdrop in which the issue arises before us, we do not think that a taxable service is rendered. The Revenue does not wish to take into consideration the background in which buildings are maintained and till they are conveyed with complete title to even the land beneath. Thus, the provisions of Sections 5 and 6 and eventually the further provisions right upto Section 13 of the MOFA would make it clear that builder and developer maintains and repairs the property till it is conveyed or the title in the same is conveyed to the Flat purchasers or the legal entity which would ultimately be formed by him
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