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30. Parliament, in bringing about the amendment in question has made a legislative assessment to the effect that a service is rendered by builders to buyers during the course of construction activities. In our view, that legislative assessment does not impinge upon the constitutional validity of the tax once, the true nature and character of the tax is held not to fall within the scope of Entry 49 of List II. So long as the tax does not fall within any head of legislative power reserved to the States, the tax must of necessity fall within the legislative competence of Parliament. This is a settled principle of law, since the residuary NEUTRAL CITATION C/SCA/11294/2010 JUDGMENT DATED: 08/10/2025 undefined power to legislate on a field of legislation which does not fall within the exclusive domain of the States is vested in Parliament under Article 248 read with Entry 97 of List I. However, it would be necessary for the Court to advert to the reply which has been filed on behalf of the Union of India in these proceedings. In paragraph 4 of the affidavit in reply it has been stated that service tax has been levied on account of the activity involving a value addition such as activities undertaken by an architect in designing a building, by civil contractors and engineers in constructing the building and in the provision of other utility services. A sample flat on site is normally made to enable prospective purchasers to envisage the final product. Choices are offered to buyers in respect of flat designs, internal shifting of walls, flooring patterns, wall colours, types of materials used for interior decoration, electrical and plumbing etc. These are also modified and personalized to suit the requirements of the buyer. Value additions and services are provided by developers to buyers when a prospective purchaser purchases a flat or unit before a completion certificate is obtained. The attention of the Court has also been drawn to the United Nations classification of products and services in which construction services are specifically NEUTRAL CITATION C/SCA/11294/2010 JUDGMENT DATED: 08/10/2025 undefined delineated in Section 5. There is no traverse on the part of the Petitioners of the statements which are contained in the affidavit in reply in which there is a reference to the nature of services rendered by builders to buyers. Be that as it may, we are firmly of the view that the legislative assessment on the basis of which a service tax is levied on the value addition which builders provide to buyers in the form of service rendered in the course of construction and construction related activities can by no stretch of imagination be regarded as so manifestly absurd so as to impinge on the constitutional validity of the provision. It would also be necessary to record that on 1 March 2006 a notification was issued by the Union Ministry of Finance in exercise of powers conferred by Section 93(1) of the Finance Act 1994 to provide for an exemption to the extent of 67% of the gross value of construction. By a subsequent notification dated 22 June 2010, the extent of the exemption has been enhanced to 75% of the gross value. What is taxed therefore is the value addition involved in the rendering of the service.