I have booked a Flat at Dahisar, in a project of M/s Nahalchand Laloochand group known as NL builders, in February,2006. The builder had given me payments schedule and I was ready to pay as per the same. I had deposited a sum of Rs.65000/- towards earnest/token money in cheque and further a sum of Rs.78000/- towards stamp duty and registration etc. Then after builder has sent a demanding letter for Service Tax which was not mentioned anywhere in their earlier payment schedule. On the first instance, I had denied to pay the same because it was not mentioned in the total payment schedule and was out of my capacity to pay. Then after, many telephonic and written correspondences done with them. Finally I agreed to pay the same and asked them to generate bill mentioning Service Tax registration number/date etc. but no reply received from the builder. However I went to builder's office to deposit remaining margin money with them but they denied to sale me the flat. I asked for the refund but they refused on the pretext that they were waiting for the lapse of the date mentioned in the payment schedule and then after, they would forfeit all my money as per terms and condition in the letter. I had sent a request notice through my lawyer but they have replied that we have forfeited the money according to the terms and condition of the earnest money letter. I had went to Dahisar East Police Station but they denied to lodge an FIR and asked me to give all details and document then they will take necessary action against the builder. I did the same but no reply received from the Police Authorities.

I am sure that builder had not registered with the Service Tax authority on the date of their demand of the same. However, Service Tax applied to construction Industries since June, 2005 then why builder had not mentioned for recovery of S.Tax in their payment schedule?. S.Tax is a statutory compliance like payment of Registration and Stamp Duty which they have hided purposely while entering into an agreement of Sale of flats with customers. This was a hidden policy of the builder.

Inspite of my payment of Rs.78000/- separately in cash towards Registration and Stamp duty and other charges, they have not made Sale Agreement with me and not registered the same. It shows the intension of the builder to acquire more and more money from the buyers and forfeit their money by lapsing of their time limits in correspondences and demanding money by way of Service Tax. The another possibility of cancellation of the deal by the builder was not having registration of S.Tax with them and they might have sold flats without levy of Service Tax since June,2005 OR they have obtained the Service Tax amount but not deposited with the Government Treasury and they had fear of complaint of the same by me.

It has come to my notice that the builder had sold same flat to more people and they were fighting in their site office.

Jay Kothari
9324901080