Tribunal: Transfer charges for name changes not subject to service tax

The Tribunal ruled in favor of the assessee, holding that the transfer charges collected for changing the name of allottees in the records do not attract service tax under the category of 'Real Estate Agent Service.' Citing precedents, the Tribunal emphasized that the assessee did not act as a real estate agent but on a principal-to-principal basis, leading to the conclusion that no service tax is payable on the transfer charges. The Tribunal allowed the stay application filed by the assessee and dismissed the appeal by the Revenue, affirming that the demand for service tax was unsustainable.

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Issues:
Whether the assessee is liable to pay service tax under the category of 'Real Estate Agent Service' on transfer charges collected from allottee buyers for changing the name of the allottee in the records of the assesseeRs.

Analysis:
The judgment involves appeals against impugned orders where the assessee, engaged in real estate development, charged transfer charges for changing the name of allottees in the records. The revenue contended that these charges are liable for service tax under 'Real Estate Agent Service.' The key issue was whether these transfer charges attract service tax under this category.

The Tribunal referred to previous cases for guidance. In the case of Ansal Housing & Construction Ltd. Vs. CST, it was held that the charges for changing the name of flat owners are not chargeable to service tax as the assessee acted on a principal-to-principal basis, not as a real estate agent. Similarly, in the case of Prestige Estates Projects Pvt. Ltd. Vs. Commissioner of Central Excise, it was ruled that transfer charges collected by the assessee, not as a real estate agent, do not attract service tax. The Tribunal emphasized that the charges were not collected in the capacity of a Real Estate Agent, leading to the conclusion that no service tax is payable on the transfer charges.

Based on the above analysis, the Tribunal allowed the stay application filed by the assessee and dismissed the appeal by the Revenue. The judgment highlighted that since the transfer charges were not collected as a Real Estate Agent, the demand for service tax against the assessee was deemed unsustainable. Consequently, the appeals were disposed of in favor of the assessee, affirming that no service tax is payable on the transfer charges in question.

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