TaxTMI 
TaxTMI 
2018 (4) TMI 115
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....ing the year 2006-07, and recorded in the books of accounts of the respondent. The same was detected during the audit of the books of respondent by the department. The departmental officers procured the relevant documents relating to the above transaction and scrutinized the same. It appeared that a certain piece of land in Nashik was sold by the persons mentioned at Sr. No. 1 to 14 of the Sale Deed dated 11.10.2006 (Vendors) to M/s Great Fortune Investment & Infrastructure Pvt. Ltd. (Purchaser). However, the consideration of Rs. 3,00,00,000/- against the said sale was received from the said Purchaser by M/s Viraj Estates Pvt. Ltd. Nashik (Confirming Party) and M/s Shri Banke Bihari Ispat Pvt. Ltd. Raigarh (Respondent), M/s Shri Ambica Ispa....
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....ervice Tax under the category of Real Estate Agent Service. (ii) The expanded definition of the term "real estate agent" under Section 65(88) of the Finance Act, 1994 brings the activity undertaken by the respondent within such definition, and hence, consideration received is liable for Service Tax. 2. On behalf of the respondent, it has been submitted by learned counsel as follows: The respondent has entered into two agreements - Development Agreement dated 19.06.2006, and subsequently, Sale Deed dated 11.10.2006. The respondent, vide the agreement, has acquired the Development Rights for the piece of land situated in Nashik. Subsequently, such Development Rights have been sold to other parties for a profit. Both the transac....
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....for the piece of land in Nashik, whereas Revenue has taken the stand that such amount is towards facilitating the sale of the said piece of land, and hence, liable to payment of Service Tax under the category of "Real Estate Agent Services". 4. We find that a similar issue was considered by the Tribunal in the case of Commissioner, Central Excise (Nashik) vs M/s Viraj Estate Pvt Ltd (supra). After perusing the said case, we note that M/s Viraj Estates Pvt Ltd was also one of the signatories to both the Development Agreement dated 19.06.2006, as well as Sale Deed dated 11.10.2006. Vide the Sale Deed dated 11.10.2006, M/s Viraj Estates received an amount of Rs. 1,10,00,000/-, whereas the respondent herein received an amount of Rs. 85,50,00....
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....e that the appellant provided any service of any development in respect of property of Mr. Pawar‟s family as is alleged in the show cause notice and held in the order-in-original. On the contrary it is evident that the appellant has always acted as purchaser and seller of [development] rights and immovable property. It is also manifest that the appellant also did not receive any consideration from Pawar family for providing any service. Instead the appellant paid the amount of Rs. 38,00,000/- to Pawar family for purchase of development rights. Had there been any taxable service from the appellant to Pawar family, the appellant would have received some consideration from the latter which is not the case here. Thus, no ingredient of tax....