2016 (12) TMI 544

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....ndela" was given to M/s. Indian Hotels Company Ltd. (IHCL) for running, conducting and operating. 2. The appellant has been represented by Ms. Aparna, ld. advocate and the Revenue has been represented by Mr. Sanjay Jain, ld. Departmental Representative. 3. Ld. advocate for the appellant inter alia submits as under:- (i) There is specific exclusion for building used for accommodation including hotels under Explanation 1 to Section 65 (105) (zzzz) of the Finance Act, 1994. Therefore, the same is not taxable under renting of immovable property service. (ii) In support of her contention, she relies upon the following decisions:- a) Jai Mahal Hotels Pvt. Ltd. Vs. CCE, Jaipur [2014 (36) STR 669 (Tri.-Del.)] b) Paradise Mehak Pro....

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....luding hotels, hostels, boarding houses, holiday accommodation, tents, camping facilities. [(v) ... (Emphasis applied)" 5.1 Explanation 1 to Section 65(105) (zzzz) of the Act makes it very clear that buildings used for residential purposes and accommodation including hotels cannot be covered under the wordings "immovable property". In the present case, there is no dispute on the fact that the entire property/space named as 'Hotel Chandela' is used as hotel only; when it is so, Revenue's stand that the service tax is liable for the renting of subject property is not correct and is untenable in the eyes of law. In this regard, the observations made by the Tribunal in the case of Jai Mahal Hotels Pvt. Ltd. Vs. CCE, Jaipur (supra) in para....