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TMI Blog2025 (4) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... on 35G of the Central Excise Act read with Section 174 of the Central Goods and Service Tax Act, 2017 challenging the impugned order bearing no. 58604/2024 of the Central Excise Service Tax Appellate Tribunal (hereinafter, 'CESTAT') dated 23rd September, 2024. 4. The brief background of the present case is that the Respondent - M/s Government Official Welfare Organisation is an organisation set up by serving and retired Central and State Government Officials. A development project was undertaken by the Respondent under a Memorandum of Understanding (hereinafter, 'MoU') dated 30th July, 2009 with one M/s India Affordable Housing Solutions (hereinafter, 'IAHS'). The services that the IAHS provided was to identify certain reputed builders or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th June, 2012, the Adjudicating Authority held that no advice, consultancy or technical assistance has been provided and the Respondent, hence, cannot be described as a 'Real Estate Consultant' in terms of Section 654(89) of the Finance Act, 1994. 10. In respect of the second period i.e., 1st July, 2012 to 31st March, 2014, the Adjudicating Authority held that the benefits arising out of a sale of immovable property would not be covered under the ambit of service. (B) Whether amount charged in the name of Demand Survey is taxable under Service Tax? 11. On this issue, the Adjudicating Authority held that there was no consideration involved in the activity of transferring the property and the amount received by the Respondent was merely in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... development charges were only in the form of profit. Therefore, they were held to be not covered under the category of "real estate agent services". 20. Following the decision in Saumya Construction (supra), the Principal Bench in Ess Gee Real Estate Developers Pvt. Ltd. (supra), where the owners granted/assigned exclusive rights to the appellant to develop the property and to sell individual developed plots in a phased manner and as consideration for the same the owners were entitled to receive from the appellant the amounts specified in the agreement. Taking note of the Circular No. B-11/3/98-TRU dated 7.10.1998 clarifying that activity of actual construction of any building, carried out by builders or developers does not attract servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut the fact remains that the notice provides the services to the customers after charging the money from them. The element itself qualifies the notice in the category of service provider." 25. On the issue of leviability of service tax on the 'Cancellation Charges' we have no hesitation in agreeing with the findings arrived at by the adjudicating authority that the cancellation charges are in the nature of penalty levied on the buyers for not fulfilling the commitment in which no real estate agent service is being provided by the appellant and hence, no service tax is leviable thereon. Similarly, the Miscellaneous Income has been verified as per the ledger account where the miscellaneous income has been reflected as discount exten ..... X X X X Extracts X X X X X X X X Extracts X X X X
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