About a year back i have purchased a flat in mumbai. on the sale value the builder has collected possible service tax dues, but has kept the same in a seperate account. the builder was very arrogant, and did not give possession until we paid the possible service tax dues.
Recently, there has been a circular issued by the Central Board of Customs & Excise Circular No. 108/02/2009 ST, dated Jan 29, 2009, stating that service tax is not applicable for flats
Is the builder justified in coercing us into paying 'possible service tax dues', and are we entitled for refund