The Delhi Bench of CESTAT has ruled that the purchase and sale of allotment rights for flats do not fall under the definition of "Real Estate Agent Services," thus no service tax is payable on such transactions. In a case involving M/s. Government Official Welfare Organisation, the tribunal dismissed the department's appeal, stating that the organization acted in its own capacity rather than as an intermediary or agent. The department had argued that the respondent facilitated transactions between builders and buyers, but the tribunal found that the activity did not meet the legal definition of "Real Estate Agent." This decision highlights the difference between acting as a real estate agent and dealing with property transactions independently.
