2025 (9) TMI 1607

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....ction 75 and penalty under Section 77 and 78 of the Finance Act, 1994 [Act, 1994]. 2. The appellant is registered with the Service Tax Authorities under the category of 'rent-a-cab scheme', 'operator service', 'security detective agency service', 'construction services', other than residential complex, including commercial or industrial buildings or civil structures, construction of residential complex services, contract services and other taxable services. The appellant being the owner of land transferred Land Development Rights to M/s. GRJ Developers and Distributors for the purpose of constructing and developing the land under a Collaboration Agreement dated March 20, 2014 to decide the terms and conditions of the development rights. ....

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....on versus Bibijan Shaikh Farid, referred to the definition of 'immovable property' under Section 3(26) of the General Clauses Act, 1897 and also the decisions on it, held that the benefit arising from the land is immovable property and TDR being a benefit arising from the land, the same would be held to be immovable property. 8. In DLF Commercial Projects Corporations versus Commissioner of ST, Gurugram-2019 (27) GSTL 712 (Tri-Chan.), the Chandigarh Bench of the Tribunal also similarly held that the 'transfer of development right' is immovable property in terms of section 3(26) of General Clauses Act, 1897, and hence no service tax is payable as per the exclusion clause in terms of Section 65(B)(44) of the Act. The relevant para is as un....

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....After the developmental activities have been carried out, sale deed is executed among the three parties namely Landowner, Developer and the Purchaser under which the title to the undivided portion of the land is transferred to the various vendees/purchasers from time to time as and when the Conveyance Deed/Sale Deed is executed in future. We further observe that it is not only the possession, which stood transferred with the right to use, enjoy and construct building/super structure, but, at the same time, undivided right, title and interest in the land also stand transferred under the Deed of Conveyance on which stamp duty has been paid and the Deed of Conveyance has been registered before the Sub-Registrar." 9. Thereafter, referring to....