Tribunal grants appeal in service tax case for property rented to hotel, citing precedent.

The tribunal ruled in favor of the appellant in a service tax liability case concerning renting out property to a hotel. Despite lower authorities rejecting the appellant's claim for exclusion based on the property's use for services like restaurants and swimming pools, the tribunal referred to a prior decision in the appellant's favor and followed the precedent set in Jai Mahal Hotels Pvt. Ltd. case. Consequently, the tribunal allowed the appeal, set aside the demand for service tax, and provided relief to the appellant based on established legal principles regarding properties used for accommodation purposes.

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Issues: Service tax liability on renting of immovable property.

Analysis:
1. The appellant was confirmed a service tax liability of Rs. 63.64 lakhs for renting out property to a hotel. The appellant claimed exclusion based on the property being used for accommodation, including hotels. However, lower authorities rejected the claim, stating the property was also used for other services like restaurants and swimming pools. The tribunal referred to a previous decision in the appellant's favor, where a similar demand was set aside based on the exclusion clause for properties used for accommodation. The tribunal followed the precedent set in the case of Jai Mahal Hotels Pvt. Ltd. v. CCE, Jaipur, to allow the appeal and provide consequential relief to the appellant.

2. The tribunal found in favor of the appellant based on the precedent decision in their own case, where a similar service tax liability was set aside. By following the earlier decision and the precedent set in Jai Mahal Hotels Pvt. Ltd. case, the tribunal set aside the impugned order and granted relief to the appellant. The decision was made after considering the arguments put forth by both sides and the established legal principles governing the exclusion clause for properties used for accommodation purposes.

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