TaxTMI 
TaxTMI 
2016 (3) TMI 442
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....ent of Revenue, Government of India, New Delhi. It is submitted that by virtue of the said notification and circular, a completely erroneous interpretation is placed on Section 65 (90a) and Section 65 (105 (zzz)) of the Finance Act, 1994 as amended by Finance Act, 2007. It is submitted that because of the incorrect interpretation, service tax is sought to be levied on the "renting of immovable property" as oppose to service tax on a service provided "in relation to renting of immovable property". The petitioner also seeks an appropriate writ, order or direction from this Hon'ble Court not restrain the respondents from charging service tax on the renting of immovable property and also seeks further appropriate writ, order or direction to dir....
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....ly paid. They also reimburse dues for electricity and water on actual consumption and duly supported by the bills. 3. During the course of their operation, the petitioner companies also receive rent or license fess or conducting fees or leasing, licensing or use of immovable properties. In these cases also, wherever agreements so provide, the petitioner companies get reimbursed in respect of dues for electricity, water, housekeeping, security etc., which are based on actual consumption and duly supported by bills. 4. The Finance Act, 2007 amended Section 65 of the Finance Act, 1994 and defined 'renting of immovable property' including renting, letting, leasing, licensing or other similar arrangements of immovable property for use in t....
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.... Finance, Government of India authorised proceeding of recovery of service tax on the same assumption that renting out of immovable property was by itself a service." 4. After relying on various case laws and provisions of Finance Act, this Court in paragraphs 44 and 45 held as under: "44. For the reasons aforesaid, while upholding Section 65(105) (zzzz) of Finance Act, 1994 as amended by Section 75 (5) (h) and Section 76 of the Finance Act, 2010, we hold that the provision of Section 65 (105) (zzzz) introducing service tax is not attracted if (i) the vacant land is used solely for agriculture, acquaculture, farming, forestry, animal husbandry, mining purposes; (ii) it is vacant land, whether or not having facilities clearly incidental ....