Mathew John, Technical Member - In these proceedings, three appeals filed by Revenue against three different respondents involving the same issue during the period 16.6.05 to 25.3.06 are being considered.

2. The Respondents constructed residential complexes on their land and sold the residential units in such complexes to customers. Before doing the construction activity, they entered into agreement for sale of residential units and also took advances from their prospective customers. They did not pay any service tax on the activity based on the reasoning that the building was being constructed on their own land and hence the activity of construction was for their own benefit and as such, it could not be considered as a service rendered to the prospective customers.

3. Revenue was of the view that such activity was undertaken for the benefit of prospective buyers against the consideration received and the respondent should have paid service tax on such activity under the heading "construction of complex" made taxable under section 65(105)(zzzh) of Finance Act, 1994. Revenue issued show-cause notices for recovery of service tax short paid for the period 16.6.05 to 25.3.06. After