2015 (5) TMI 343

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....enalties was confirmed under the heading "Renting of Immovable Property" service. The appellants have argued extensively that they had taken land on 30 year lease from Municipal Corporation, Raipur on which they were allowed to construct commercial building and use the same during the lease period after which the property would go to the Municipal Corporation, Raipur, from whom the piece of land was taken on lease. The appellants constructed the commercial building on that land and gave some of it on monthly rent and also 'sold' some part on 30 year lease to various persons. The appellants pleaded that they had paid service tax under "Renting of Immovable Property" service on the monthly rental income after availing various exemptio....

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....g which they constructed thereon could not have been sold by them because they cannot sell what they do not own. As regards the argument that they had "sold" their rights in the property for 30 years to persons they leased the property for 30 years, it is to state that the perusal of the so called "sale deed" clearly states that it is given on lease and subject to various conditions, For example, it is stipulated that the buyer, (who in real terms is actually the lessee) would not do any commercial activity, which will create bad odour or noise and that he shall not use the premises for selling alcohol, meat or fried food. 4. As per Section 65(90)(a) of the Finance Act, 1994 "renting of immovable property" includes renting, letting leasi....