In Brief
M/s Elegant Developers, a land acquisition and development firm, entered into MOUs with Sahara India Commercial Corporation Ltd. to facilitate land purchase and transfer for real estate projects, receiving compensation based on the difference between fixed rates and actual land costs paid. The Commissioner taxed these transactions as 'Real Estate Agent' services under Section 65(88) of the Finance Act, 1994, claiming unauthorized service tax of Rs 10.45 crore. The Supreme Court affirmed the Appellate Tribunal's decision, holding the transactions were simple sale/conveyance of immovable property excluded from service tax under Section 65B(44)(a)(i), not agency services. The respondent acted as a principal bearing procurement risk, not an agent rendering services. Extended limitation was inapplicable as no deliberate suppression was proved. Appeals dismissed.
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