Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Renting quarters to contractor employees for residential purposes does not attract service tax under Section 80 CESTAT Kolkata held that renting quarters to contractor employees for residential purposes does not attract service tax under 'Renting of Immovable ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Renting quarters to contractor employees for residential purposes does not attract service tax under Section 80
CESTAT Kolkata held that renting quarters to contractor employees for residential purposes does not attract service tax under "Renting of Immovable Property Service." The tribunal ruled that immovable property for service tax purposes excludes buildings solely used for residential purposes, distinguishing them from commercial properties like factories or offices. The demand of Rs.20,83,934/- with interest was set aside as unsustainable. Additionally, the entire penalty of Rs.53,09,952/- was waived under Section 80 of Finance Act, 1994, since appellant had paid other service tax dues before notice issuance. Appeal allowed partly.
Issues involved: The appeal against the Order-in-Original confirming demands for various services including Renting of Immovable Property Service, contesting the demand, interest, and penalties imposed.
Renting of Immovable Property Service: The appellant, a PSU distributing electricity, contested a service tax demand on renting quarters to contractors' employees for residential purposes. The appellant argued that renting solely for residential purposes is not liable to service tax. The tribunal agreed, citing a precedent where residential accommodation use by contractor employees did not constitute furtherance of business. The demand of Rs.20,83,934/- was deemed unsustainable, leading to the waiver of interest and penalties.
Penalties under Section 78 and Section 80: The appellant argued for the waiver of penalties under Section 78 of the Finance Act, stating that service tax with interest was paid before the notice. The tribunal agreed, invoking Section 80 of the Finance Act to waive the entire penalty of Rs. 53,09,952/-. The demand for service tax and penalties were set aside, modifying the impugned order accordingly.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
of 
TaxTMI 
