AI Drafter 
TaxTMI 
TaxTMI 
2023 (5) TMI 97
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....yment of service tax under the category of Real Estate Agent service as defined under Section 65(88) read with Section 65(89), 65(105)(v). 2. Shri Vikash Mehta learned Consultant appearing on behalf of the appellant at the outset submits that in the present case the appellant is engaged in purchase of the farmer's land under an agreement by making part payment and subsequently the sand is sold to M/s. Sahara India Commercial Corporation Limited. In these undisputed facts, the appellant is engaged in the business activity of purchase and resale of land which does not amount to service of Real Estate Agent service. He submits that there is no activity such as Real Estate Agent service in the present case as the appellant purchase land at '....
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....er the facts and circumstances we find that the appellant entered into an agreement of trading in land, wherein they agreed to transfer, a measurement or area of land, in a particular area in favour of the Sahara India. Such land was to be arranged by them by way of procurement from the land owners. The appellant was also obligated to examine the title of the prospective land owner and to further ensure the availability of land owner at the office of the Registrar for execution of the sale deed. In fact Sahara India instead of paying the price directly to the land owner, paid lump sum amount to the appellant. Thereafter the appellant identified the land, the seller, and after being satisfied with the title of the seller, entered into agreem....
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.... In this regard, we also take shelter of this Tribunal's decision in the case of Mormugao Port Trust v. CC, CE & ST, Goa - 2017 (48) S.T.R. 69 (Tri. - Mumbai). The relevant extract is reproduced here below :- "18. In our view, in order to render a transaction liable for service tax, the nexus between the consideration agreed and the service activity to be undertaken should be direct and clear. Unless it can be established that a specific amount has been agreed upon as a quid pro quo for undertaking any particular activity by a partner, it cannot be assumed that there was a consideration agreed upon for any specific activity so as to constitute a service. In Cricket Club of India v. Commissioner of Service Tax, reported in 2015 (40)....
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....ibution. 14. ... To the extent that any of these collections are directly attributable to an identified activity, such fees or charges will conform to the charging section for taxability and, to the extent that they are not so attributable, provision of a taxable service cannot be imagined or presumed. Recovery of service tax should hang on that very nail. Each category of fee or charge, therefore, needs to be examined severally to determine whether the payments are indeed recompense for a service before ascertaining whether that identified service is taxable." 29. We feel that since the specific remuneration has not been fixed in the deal for acquisition of the land we are of the view that both the parties have worked mor....
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....since the exact amount of remuneration for providing any service, if any, has not been quantified at the same time since most of the MoU remained to be fully executed and therefore the exact amount of remuneration, which was the difference in amount paid to the seller of land and average price decided in MoU, could not be finalized and therefore we feel that taxable value has not reached finality and therefore demanding service tax on the entire amount paid to the appellant for acquisition of land is not sustainable in law in view of the discussion in the preceding paras. 32. Further we find that the issue relates to interpretation, and there is no mala fide on the part of the appellant. The transaction is duly recorded in the book....