I booked a flat in Bangalore in April 2012 under the pre launch offer. The construction started 1 year late and currently 50% of the building has been constructed. All the demands for payments were fulfilled on time. Recently a demand of service tax was raised by builder at a very short notice (in mid November 2013). I had asked for extension of time and promised to pay by 1st week of December. The builder issued a legal notice for payment of service tax by 28th november. I did not get the legal notice. When I went for the payment of service tax in 1st week of December the builder informed that my apartment has been cancelled due to non-payment of service tax. However, in the sale agreement it has been mentioned clearly that any legal notice is valid only when sent by post acknowledgement due. No communication via phone or e-mail was made by the builder before or after issuing the legal notice.
Kindly suggest if builder can cancel the apartment on this ground. I do not want to cancel the apartment because in the last 2 years the price has doubled and by cancellation the builder will get the maximum benefit. How can we go ahead in this matter?
