𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗵𝗺𝗲𝗱𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗼𝗻 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 𝗖𝗵𝗮𝗿𝗴𝗲𝘀 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Amounts received as development charges are in the form of profit and do not fall under 'Real Estate Agent’s Service,' making them not liable for service tax."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: J P Infrastructure Pvt Ltd 𝗜𝘀𝘀𝘂𝗲: Whether the appellant is liable for service tax under the category of "Real Estate Agent’s Service" for development charges received. 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant received ₹3.39 crores as development charges; service tax demands with penalties were issued for non-registration and non-payment.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that the appellant acted as a project developer, not a real estate agent, and the received charges were profits, not service fees. Service tax liability depends on the nature of services and contract interpretation. Citing Safal Construction Pvt. Ltd., the appellant’s activities were exempt from "Real Estate Agent’s Service."

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: J P Infrastructure Pvt Ltd. vs. Commissioner of Central Excise – Service Tax 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 12 December 2022 📜 This ruling clarifies that profits from development agreements are not taxable under "Real Estate Agent’s Service."