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2015 (12) TMI 210 - CESTAT NEW DELHIWaiver of pre deposit - Real Estate Agent services - consideration received by way of administrative charges under clause 15 - Held that:- Appellant is the owner of the premises where flats are being constructed. Till the sale is completed in favour of the initial allottee by execution of a written sale deed which is registered under provisions of the Registration Act, there is no sale and therefore no transfer of ownership in favour of the allottee. Till such time the title in the property continues with the appellant. “Real Estate Agent” Service is defined to mean a person engaged in rendering any service in relation to sale, purchase, leasing or renting of any real estate and includes a real estate consultant. The enumerated taxable service is any service provided or to be provided to a client by a real estate agent in relation to real estate. In terms of the definition real estate agent must act as the agent of the owner of real estate and thus the owner of the property cannot be a real estate agent. In terms of clause 15, since administrative charges are collected only prior to a concluded sale by the appellant in favour of third parties, the appellant continues to be owner of the real estate and therefore could not be considered an agent of his own property. - classification of the petitioner is a “Real Estate Agent” and levy and demand of service tax on administrative charges collected, appears fundamentally misconceived - Decided in favour of assessee.
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