TaxTMI 
TaxTMI 
2017 (11) TMI 1111
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....of the accounts of the appellant, was of the view that the amount received by the appellant towards lease rent will be liable to the payment of service tax under the category of Renting of Immovable Property Service as per section 65(90a) of the Finance Act, 1994. Accordingly show cause notice was issued covering the period 2006-07 to 2010-11. The adjudicating authority confirmed the demand of service tax on the appellant amounting to Rs. 1,87,78,107/- along with payment of interest and penalties leviable under various sections of the Finance Act 1994. Aggrieved by the impugned order, the present appeal has been filed. 3. With the above background we have heard Shri Mahindra Gargey, Advocate for the appellant as well as Shri Sanjay Jain,....
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.... exclusionary clause as well, enumerating the subjects excluded from the ambit of "immovable property". Under this exclusionary dispensation; in sub-clause (a) vacant land solely used for agricultural, aquaculture farming, forestry, animal husbandry, mining purposes; in sub-clause (b) vacant land, whether or not having facilities clearly incidental to the use of such vacant land; and in sub-clause (c) land used for educational, sports, circus, entertainment and parking purpose, are excluded from the purview of "immovable property". On a true and fair construction of the exclusionary clause, the legislative intent is compelling that vacant land whether having facilities clearly incidental to its use as such or otherwise does not constitute i....
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....dments are being made in the definition of "renting of immovable property" service inter alia levy of Service Tax on renting of vacant land where there is an agreement between lessor and lessee for undertaking construction of building or structure on such land for furtherance of business or commerce during the tenure of the lease. The Board Circular No. 334/2010-TRU, dated 262-2010 (in paragraph 3) explains the purpose of the amendments to Section 65(105)(zzzz). Accordingly, the Circular explains that amendments are being made in the definition of this taxable service to provide that renting of vacant land where there is an agreement or contract between the lessor and lessee for undertaking construction of buildings or structures on such la....
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....ce of business or commerce is a taxable service only from 1-7-2010, and not so, earlier to this date". 14.1 In this case, the appellant is a body corporate of the Government of Uttar Pradesh for performing statutory functions in accordance with the provisions of U.P. Industrial Area Development Act, 1976 and one of its functions is the allotment of vacant land to various persons for industrial or residential purposes on long term lease basis. In our view, there is merit in the appellant's plea that they were under bona fide belief that the allotment of vacant land to various persons on long term lease basis for construction of building for industrial purposes, would not attract Service Tax under Section 65(105)(zzzz). Therefore, in the c....