2016 (1) TMI 848

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....se Notice dated 19.11.2008)  (ii) Rs. 6,86,467/- for the period April, 2008 to September, 2008 (Show Cause Notice dated 28.01.2008) The aforesaid demands were confirmed along with interest and penalties on the ground that the appellant provided 'Real Estate Agent' service but did not pay service tax on the administrative charges/transfer charges recovered by it from its clients. These administrative/transfer charges related to the service provided by the appellant for changing the name of the owner (last allottee) in its records whenever any sale/purchase took place prior to execution of sale deed in favour of the buyer. 2. The appellant has contended that (i) these administrative/transfer charges were not in relation to....

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....ncludes a real estate consultant'. It is an admitted fact that the appellant was a real estate agent and registered under 'Real Estate Agent' service. It was providing service in relation to sale purchase, leasing or renting of real estate and paying service tax for rendering real estate agent service. The related taxable service is defined in section 65 (105) (v) ibid as under:-  "Taxable service means any service provided or to be provided to any person by real estate agent in relation to real estate." It is evident that the administrative/transfer charges were recovered for rendering service in relation to real estate. Thus, we are of the clear view that the service rendered clearly fell within the purview of 'Real Estat....

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....any incorrect statement by itself cannot be equated with wilful mis-statement. Indeed the fact that even the adjudicating authority [Commissioner (Adjudication), Service Tax, New Delhi] in its order No.49/AKM/CST (Adj)/2012, dated 28.06.2012 in the case of M/s. Vatika Ltd. has held that no service tax is payable under 'Real Estate Agent' service on such administrative/transfer charges is a clear evidence that it was in no way unreasonable on the part of the appellant to entertain such a bona fide belief. 6. As regards the contention that cum tax benefit should be extended to the appellant, we find that in the given circumstances, the cum tax benefit can be extended in terms of Explanation 2 to section 67 ibid as it existed prior to 18.04....