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2018 (9) TMI 259 - AT - Service TaxReal Estate Agent Services - Non-discharge of Service Tax - Managing projects of M/s. Mckino & M/s. Axa Business - Assignment & transfer income - Assessment & bifurcation fees Khata transfer fees - Forfeiture of amounts received - Held that:- On going through the agreement between the appellants as a real estate developers and prospective buyers, it is found that the contract is on a principal to principal basis - the amounts received by the appellants in respect of 3 activities undertaken by them i.e. ‘assignment transfer income’, assessment and bifurcation fees, ‘Khata transfer fees’ and ‘forfeiture’ amounts find their origin in the agreement with prospect to buyers in which the appellants are developers only and are not workings as real estate agents - the activity undertaken by them is not in the capacity of a real estate agent but undertaken as real estate developers - demand set aside. In the case of Ansal Properties and Infrastructure Ltd. [2017 (9) TMI 1071 - CESTAT NEW DELHI] it was held that demand pertaining to consideration received for change of name for flat owners by way of substitution new buyers name with the earlier flat owners is not chargeable to Service Tax. Management of construction of projects - Held that:- The appellants have been supervising the construction projects of M/s. Mckino & M/s. Axa Business Services - their role was to supervise the construction and if the contractor fails to meet the expectations of their principals to undertake the construction themselves therefore, it is not a mere advice ‘consultancy or technical assistance’ in respect of ‘management of real estate’ - no Service Tax can be demanded from the appellants on this count under the head ‘Real Estate Agent Service’ - demand set aside. The demands pertaining to the services are set aside along with interest and penalties - appeal allowed - decided in favor of appellant.
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