A bench of justices JB Pardiwala and Sandeep Mehta delivered the ruling while dismissing an appeal filed by the Commissioner of Service Tax, New Delhi, against M/s Elegant Developers, a Prayagraj-based partnership firm.The revenue department had contested a 2019 order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), which had quashed a tax demand exceeding ₹10 crore.The department had claimed that Elegant Developers had rendered taxable "real estate agent" services to Sahara India Commercial Corporation Ltd (SICCL) in connection with the purchase and development of land in several states.The firm, however, said that its dealings with SICCL involved outright sale and transfer of land, not advisory or brokerage functions. Between 2002 and 2005, the parties executed three memoranda of understanding (MoUs) for the procurement of land in Rajasthan, Gujarat, and Haryana. Under these, Elegant Developers undertook to identify, consolidate, and transfer land parcels to SICCL at a fixed per-acre rate, bearing all financial risks associated with price variation.Following an investigation, the Directorate General of Central Excise Intelligence (DGCEI) issued a show-cause notice demanding ₹10.28 crore in service tax, alleging suppression of facts and classifying the firm as a "real estate agent".The Commissioner confirmed the demand in 2013, but the CESTAT later overturned the order, holding that the transactions were plain sales of land.Upholding the tribunal's reasoning, the Supreme Court examined the contractual terms and statutory definitions under Sections 65(88), 65(89), and 65B (44) of the Finance Act. The apex court found that the firm had acted on its own account, assumed commercial risk, and executed registered sale deeds transferring title, activities expressly excluded from the definition of "service".

Sale of immovable property outside scope of service tax: SC

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