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Caselaw on development rights.
CCE, RAIPUR Vs M/s SHRI BANKE BIHARI ISPAT PVT LTD
Service Tax - Assessee acquired the Development Rights for the piece of land and subsequently, sold such Development Rights to other parties for a profit – transaction of purchase and the sale of Developmental Rights - Demand under services of Real Estate Agent service –
HELD - There is no evidence that the appellant provided any service of any development in respect of property - the appellant has always acted as purchaser and seller of Development Rights and immovable property - the activities as undertaken by the respondent would not fall under the category of ‘real estate agent’ services or ‘real estate consultant’ services - the consideration received by the respondent is towards sale of Developmental Rights to the land and cannot be considered as commission for real estate agents services - the appeal filed by the Revenue is dismissed