Commissioner of Service Tax v. Elegant Developers; 2025 INSC 1299 - Central Excise Act - Real Estate Agent
Central Excise Act 1944- Real Estate Agent- For a person to be covered under the definition of ‘Real Estate Agent’, there must be attributable to such person, an act of rendering service. The section does not cover a direct transaction of sale and/or purchase inter se between two individuals or entities, as the case may be. Likewise, ‘Real Estate Consultant’ is a person who renders services in form of advice, consultancy or technical assistance for the purposes as set out in Section 65(89) of the Finance Act, 1994. The common thread passing through both the provisions is that the person concerned must be engaged in rendering of services, advice, consultancy or technical assistance for sale and purchase of land or for development, construction, evaluation, conception, etc. of real estate. (Para 38) It is only the contract of agency inter se between the service provider or the consultant, as covered under Sections 65(88) and 65(89) of the Finance Act, 1994, and the principal engaging such service provider or the consultant, for the purpose specified in these two sections, which establishes the agency relationship. The consideration paid for the services or the consultancy provided under such contract in form of commission or otherwise, would be the taxable event as defined under Section 65(105)(v) of the Finance Act, 1994. (Para 39) [Context: In this case, SC held that that the transactions/activities undertaken by the respondent with SICCL did not bring it within the purview of ‘Real Estate Agent’ or ‘Real Estate Consultant’ as defined under Sections 65(88) and 65(89) of the Finance Act, 1994, respectively.]
Case Info
Key Details
- Case name: Commissioner of Service Tax v. M/s Elegant Developers.
- Neutral citation: 2025 INSC 1299.
- Coram: J.B. Pardiwala, J. and Sandeep Mehta, J.
- Judgment date: November 10, 2025.
Caselaws and Citations
- Union of India v. Future Gaming Solutions Pvt. Ltd., (2025) 5 SCC 601.
- Stemcyte India Therapeutics Pvt. Ltd. v. CCE & ST, 2025 SCC OnLine SC 1412.
- Chhattisgarh Steel Castings (P) Ltd. v. Union of India, 2020 (34) G.S.T.L. 70 (Chhattisgarh HC).
Statutes / Laws Referred
- Finance Act, 1994:
- Section 65(88) (Real Estate Agent).
- Section 65(89) (Real Estate Consultant).
- Section 65(105)(v) (Taxable service: real estate agent).
- Section 65B(44)(a)(i) (Definition of “service” – exclusion for transfer of title in immovable property).
- Section 68 (Service tax payment).
- Section 70 (ST-3 returns).
- Section 73(1) and proviso (extended period of limitation).
- Section 75 (Interest).
- Sections 76–78 (Penalties).
- Section 83 (Application of Central Excise Act provisions).
- Central Excise Act, 1944:
- Section 35L(b) (Appeals to Supreme Court).
- Real Estate (Regulation and Development) Act, 2016:
- Section 2(zn) (Definition of “real estate project”).
