TaxTMI 
TaxTMI 
2017 (9) TMI 885
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.... that M/s Aviacon India, a proprietorship firm owned by Shri Bahadur Chand Gupta, entered into a lease agreement with M/s Frankfinn Institute of Air Hostess Training. The agreement provided for a leasing out 550 sq. yards of premises and fuselage of Airbus 300 Aircraft for commercial use of a lessee for advertisements, promotion and imparting basic cabin crew/cabin crew/hospitality/travel and tourism training of the institute run by the lessee. M/s Aviacon received consideration in terms of such lease agreement. As the land which was leased out, was co-owned by the proprietor of M/s Aviacon alongwith his mother, she was paid 50% of land rent by Aviacon. Proceedings were initiated against M/s Aviacon and Mrs. Bhateri Devi, who received rent ....
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....able property service. The lessee is not using the property for any commercial purpose and, as such, no service tax liability can be demanded from the appellants ; 3. The learned AR submitted that the aircraft which was earlier a functional Airbus 300 is now kept by the main appellant in his own premises and leased out to the training institute for commercial use of advertisement, promotion, training etc. There is no basis in the claim of the appellant that the property is not used for commercial purpose. The agreement categorically states that the lessee shall use it for commercial purpose. Regarding consideration being taxed under two categories it is submitted that the appellant gave the details under different headings and accordingl....
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.... the (fuselage) MSN 111 Airbus 300 B2 Ex VT-EFW, upon that premises, (hereinafter called "The Airbus"). AND WHEREAS the Premises has been owned jointly by the LESSOR and his mother, Mrs. Bhateri Devi and Mrs. Bhateri Devi has no objection of any nature, whatsoever for carrying out activities enumerated in this agreement in the Premises by the LESSEE. AND WHEREAS the lessor further represents that he can use the Airbus and the premises for commercial purposes. AND WHEREAS the LESSEE is a leading institute in India that provides basic cabin crew/cabin crew training for aspiring Air Hostesses & Flight Stewards/Air Hostesses & Flight Stewards. AND WHEREAS the first party intend to give an exclusive lease basis the commercial use of ....
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....eans services provided in relation to business or commerce and includes evaluation of prospective customers ........ infrastructural support services .......... The explanation below the tax entry gives the scope of the expression "infrastructural support services". The same will include providing office alongwith office utilities, lounge, reception with competent personnel to handle messages, secretarial services, internet, telecom services, pantry and security. In the present case, the terms of the agreement clearly stipulate that the main appellant shall maintain the property alongwith required equipments, as mentioned in Schedule II of the agreement. The Schedule II lists out various equipments and facilities which are to be provided by....
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....thorities are correct in confirming the tax liability of the main appellant as well as Mrs. Bhateri Devi under the category of renting of immovable property service on the consideration received by them and clearly admitted by them. 9. In view of the above, discussion and analysis, we find no merit in the submission made by the appellant against the service tax demands. However, considering that renting of immovable property service has been a subject matter of substantial litigation, and also the tax entry was interpreted to mean only services "in relation to" renting of not renting per-se by the Hon'ble Delhi High Court in Home Solutions Retail Ltd. Vs. Union of India - 2011 (21) S.T.R. 109 (Del.). Later, amendments were brought in, in....