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TMI Blog2017 (11) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... he heading "Administrative Charges" for allowing transfer of flat buyers right to another person. The Revenue held a view that the said amount is liable to be taxed under "real estate agent service" in terms of Section 65 (88), (89) readwith Section 65 (109) (v) of the Finance Act, 1994. Accordingly, the Original Authority adjudicated the case and confirmed service tax liability for the period 01/10/2007 to 31/03/2010, raised in three different show cause notices. 2. The learned Counsel appearing for the appellant contested the findings of the impugned order stating that they are basically involving in the activity of real estate development and promotion. They are not dealing in any property as real estate agent. Their transactions are on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... below :- "9. The respondents were sought to be taxed under the category of "real estate agent's service" in terms of Section 65 (88) (89) of the Finance Act, 1994. The statutory provision of the tax entry are as below :- "Section 65 (88) and (89) of the Act, 1994, defines the "real estate agent" and "real estate consultant" as under: (88) "real estate agent" means a person who is engaged in rendering any service in relation to sale, purchase, leasing or renting, of real estate and includes a real estate consultant; (89) "real estate consultant" means a person who renders in any manner, either directly or indirectly, advice, consultancy or technical assistance, in relation to evaluation, conception, design, development, constructi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her cannot be taxed as real estate agent service because they were custodians of land and were dealing with the allottee on principal to principal basis, not as an agent of either party. We note that the reliance placed by Revenue on Ajay Enterprises Pvt. Ltd. Vs. CST, Delhi - 2016 (42) S.T.R. 471 (Tri. - Del.) is not appropriate. In the said case it was admitted that the appellant was a real estate agent registered with the Department. Here in the present case the respondent is a real estate developer selling their constructed flats. They are dealing with the buyers, old or new, on principal to principal basis. Accordingly, we are in agreement with the impugned order that no service tax liability can be confirmed against the respondent und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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