2017 (4) TMI 952

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....te in the present appeals relates to their service tax liabilities in respect of certain consideration received for residential quarters given out on rent to various contractors, who executed the work for the appellants. The Revenue entertained a view that the residential quarters, which were let out by the appellant to the contractors, should be liable to service tax under the category of -renting of immovable property service' in terms of Section 65(90a) read with Section 65(105)(zzzz) of the Finance Act, 1994. The Revenue contended that though the accommodation is for residential purpose, ultimately such letting out improves the business or commerce of the appellant as well contractors, who took the accommodation on rent. Since the prope....

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....ide scope and as such, the impugned order has correctly upheld the liability of the appellant. 5. We have heard both the sides and perused the appeal records. 6. The statutory provisions relevant for the present case are as below: "Section 65(90a)- "renting of immovable property" includes renting, letting, leasing, licensing or other similar arrangements of immovable property for use in course or furtherance of business or commerce but does not include-- (i) renting of immovable property by a religious body or to a religious body; or (ii) renting of immovable property to an educational body, imparting skill or knowledge or lessons on any subject or field, other than a commercial training or coaching centre. Explanation. 1]-For the....

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....nce of business or commerce. But does not include- (a) vacant land solely used for agriculture, aquaculture, farming, forestry, animal husbandry, mining purposes; (b) vacant land whether or not having facilities clearly incidental to the use of such vacant land; (c) land used for educational, sports, circus, entertainment and parking purposes; and (d) building used solely for residential purposes and buildings used for the purpose of accommodation, including hotels, hostels, boarding houses, holiday accommodation, tents, camping facilities. Explanation 2 - For the purpose of this sub-clause, an immovable property partly for use in the course or furtherance of business or commerce shall be deemed to be immovable property for use ....