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Gujarat HC notices to the FinMin and Service tax dept. about service tax
November, 26th 2010

The Gujarat High Court Thursday issued notices to the Union Finance Ministry and Service tax department following a petition seeking withdrawal of service tax on construction of residential, industrial and commercial properties.

A division bench comprising Chief Justice SJ Mukhopadhaya and Justice KM Thaker issued notice following a petition by V Square Projects Limited.

The company, through its counsel Saurabh Soparkar and Mahesh Bhavsar, contended in the petition that the service tax department has imposed service tax on transaction of immovable properties by the consumers from builders by making amendments in Finance Act, 1994.

They contended that imposition of service tax is unconstitutional on such transactions as it does not fall under the definition of service. They said it fell under category of sale hence service tax could not be levied upon it.

Further hearing of the case has been fixed for December 23.

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