TaxTMI 
TaxTMI 
2018 (7) TMI 705
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....y auctioning these water bodies certain amounts are collected by the Fisheries Department of Government of Rajasthan on annual basis. It has been the contention of the department of Central Excise and Service Tax, Jaipur-I, that leasing out of water bodies for the purpose of aquaculture and fishing rights, amounts to renting of immovable property as defined under Section 65 (90a) of the Finance Act, 1994. On the basis of above, a show cause notice demanding service tax of Rs. 10,33,44,783/- was issued on 31.3.2014 which has been adjudicated by the impugned order dated 19.1.2015, wherein the above amount of Service Tax has been confirmed and a penalty of equal amount has been imposed under Section 78 of the Finance Act, 1984, penalties under....
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....ry, 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 purposes of this sub-clause, an immovable property partly for use in the course or furtherance of business or commerce and partly for residential or any other purpose shall be deemed to be immovable property for use in the course of furtherance of business ....
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....e of the following service, namely:- (a) .......... (b) ........... (c) ........... (d) Service relating to agriculture or agricultural produce by way of - (i) Agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection of test. (ii) ..... (iii) ..... (iv) Renting or leasing of agro machinery or vacant land with or without a structure incidental to its use. 3. As per the provisions of negative list as provided under section 66D of the Finance Act, the operation relating to agriculture have been exempted from the levy of service tax as 'agriculture' has been included in the negative ....
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....find that water bodies can only exists on vacant land and for undertaking aquaculture, the presence of water bodies is absolutely essential and pre-requisite. We therefore, find that the learned adjudicating authority has applied the exclusion explanation to the definition of 'renting of immovable property' in a very narrow way. We don't find any ambiguity in the provisions to say that water bodies rented out for aquaculture, are excluded from the scope of 'Renting of immovable property". 6. We are of the firm opinion that leasing of water bodies for fishing purposes is same as leasing of vacant land for aquaculture and therefore, same is fully covered under the exclusion clause of Section 65 of the Finance Act, 1994 and hence not leviab....