2018 (2) TMI 840

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....e present appeal is with reference to two issues. a. The liability of the appellant to pay Service Tax under the category of Renting to Immovable Property Service with reference to parking fees collected from various persons who used the premise of the appellant to park vehicles. b. The second issue is with reference to eligibility of Cenvat Credit on banking and other financial services availed by the appellant during the course of raising finance for the construction of the mall which is further used by the appellant for business or commerce. The lower Authority held that the appellant is liable to pay Service Tax on all the consideration received under the category of parking fee as the same will fall under the taxable entry of ren....

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....ory. We note that the statutory tax entry for renting of immovable property service under heading 65(105) (zzzz) of the Finance Act, 1994 stipulates the immovable property should be used in the course of furtherance of business or commerce. The parking facility availed by various visitors to the mall is not in furtherance of any business or commerce as the other party is not involved in any such activity. However, the owners of the shop/ and their employees are availing the parking facility for which monthly consideration is collected by the appellant along with the rent payable for the said shops and premises. This will assume the nature of renting of immovable property in furtherance of business or commerce. Accordingly, the consideration....