The facts are as follows:
I bought one residential unit out of 4 in a flat in Nov 2013 (during the course of construction) . The builder got himself registered under the service tax on Dec 2013 .
The builder agreed that the consideration amount is inclusive of all taxes, but also stated that he may charge VAT etc (not expressly stated in agreement) . The building was completed in Jan 2014 and now the builder is claiming service tax from me.
The builder agreed to hand over the possession of the property to me with a warning that the notice he would receive will be forwarded to me and I had to pay the amount with penalty and interest.
My doubts are:
The law has been recently amended to exempt only one residential unit by Notification No. 25/2012 -ST dated 20.06.2012 against the previously existing 12 units. But the concept of personal use is not removed expressly by the said notification.
1. Can the Notification override the Act? The notification basically exempts certain services. In doing so, it exempted this (construction of residential complex) service which is already available under the Act leading to restriction of the exemption.
2. Whether the "Personal Use" is also removed by the said Notification though not explicitely stated
3. Whether I have to pay service tax (as it is generally to be paid by the service provider)
Thank you
