TaxTMI 
TaxTMI 
2024 (3) TMI 692
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.... ORDER PER : P. ANJANI KUMAR M/s. Vatika real estate developers and are engaged in provision of services like interior decorator services, architect services, renting of immovable property services and goods transport services agency services and are registered for the same. The Ms. Vatika Limited have been collecting transfer/administrative charges for providing services in relation to change/substitution of the names in cases where the property were transferred by original customers. Revenue issued show cause notices dated 22.04.2009, 16.04.2010 & 27.01.2011; 01.03.2012 and 26.03.2013. Commissioner (adjudication) dropped show cause notices dated 22.04.2009, 16.04.2010 & 27.01.2011 Vide order-In-Original no. 41-43/AKM/2012. Commiss....
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....rovided by M/s Vatika and therefore are chargeable to service tax. Learned authorized representative submits in respect of appeal no. 60130/2016 that the adjudicating authority has rightly confirmed the demand following the decision of CESTAT in the case of Ajay Enterprises (Supra). 3. Shri Tarun Sharma, CA appearing for the M/s Vatika Limited submits that the pre-requisites for levying service tax under real estate agent services are that the service provider should be in relation to real estate; primary activity undertaken by M/s Vatika Limited is that a sale of units constructed by them to the prospective buyers; the transfer/administrative charges received from the buyers were towards administrative charges to change the records; they a....
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.... Delhi. Learned counsel further submits that in case the service tax is confirmed the amount received by the should be treated to be inclusive of service tax and benefit of cum-duty price should be extended as held in Commissioner Vs. Advantage Media Consultant - 2009 (14) S.T.R. J 49 (S.C.). Ld. Counsel further submits that as there was no fraud, collusion, willful statement are suppression of facts or contravention of any of the provisions of act which intent to evade payment of tax, extended period cannot be invoked. He submits also that when the demand is not sustainable there is no question of imposing any penalty. 5. Heard both sides and perused the record of the case. 6. We find that M/s Vatika Ltd. have charged administrative/tra....
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....al Authority. In RIICO - 2017-TIOL-1725-CESTAT-DEL., the Tribunal held that the transfer charges received by the appellant for permitting the transfer of allotted land from one person to another 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. v. 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 wit....