Appellant not liable for service tax on amounts from Snack Bar.

The Tribunal ruled in favor of the Appellant, determining that they did not provide "renting of immovable property" services to film distributors and were not liable for service tax on amounts received from the Snack Bar. The demand for service tax was set aside, and the appeal was allowed.

---

---

Issues Involved:
1. Whether the Appellant provided "renting of immovable property" services to film distributors.
2. Whether the Appellant is liable to pay service tax on "miscellaneous receipts" and "license fee" from the Snack Bar.
3. Applicability of the extended period of limitation for the demand of service tax.

Issue-wise Detailed Analysis:

1. Provision of "Renting of Immovable Property" Services:
The Principal Commissioner confirmed the demand for service tax under "renting of immovable property" services, asserting that the Appellant provided interconnected services to film distributors, including renting the theatre, managing theatre operations, and providing equipment for screening films. The Department's view was that the Appellant was essentially renting out its theatre for film exhibition, making it liable for service tax under section 65(105)(zzzz) of the Finance Act 1994 and section 66E(a) post-July 1, 2012.

However, the Appellant contended that it was not providing "renting of immovable property" services. The agreements indicated that the Appellant obtained theatrical exhibition rights from the distributors and shared a percentage of the Net Box Office Collection (NBOC) with them. The theatre was used by the Appellant itself to screen films, not by the distributors. The Tribunal agreed with the Appellant, noting that the agreements showed the Appellant paying the distributors for theatrical rights, indicating the flow of service and consideration. Therefore, no service tax could be levied on the Appellant for renting immovable property. The Tribunal referenced a similar case, Moti Talkies vs. Commissioner of Service Tax, where it was held that no service tax was justified as the distributors did not make any payment to the exhibitor.

2. Liability for Service Tax on "Miscellaneous Receipts" and "License Fee":
The Principal Commissioner also confirmed the demand for service tax on amounts received under "miscellaneous receipts" and "license fee" from the Snack Bar, categorizing it under "renting of immovable property" services. The Appellant argued that these amounts were below the threshold exemption of Rs. 10,00,000 provided in the notification dated June 20, 2012, and thus not liable for service tax.

The Tribunal found that the confirmation of the demand for Rs. 36,000 received from M/s. Storage and General Services Pvt. Ltd., which ran a snack bar, was indeed below the threshold exemption and hence not taxable. Additionally, the income from "Shots and Slides Hire" was for exhibiting advertisement films and slides, which fell under the negative list post-July 1, 2012, and was not taxable even before this date as it did not constitute "renting of immovable property" services. The interest income shown by the Appellant was from bank deposits and not related to renting services.

3. Extended Period of Limitation:
The Appellant argued that the extended period of limitation could not be invoked, making the demand till March 2012 time-barred. The Tribunal did not specifically address this issue in detail but set aside the entire demand based on the substantive findings on the nature of services provided.

Conclusion:
The Tribunal concluded that the Appellant did not provide "renting of immovable property" services to the film distributors and was not liable for service tax on the amounts received under "miscellaneous receipts" and "license fee" from the Snack Bar. The impugned order dated January 25, 2016, was set aside, and the appeal was allowed.

---