TaxTMI 
TaxTMI 
2018 (10) TMI 477
X X X X Extracts X X X X
X X X X Extracts X X X X
....acant land. Department was of the view that the vacant land being an immovable property would fall within the ambit of renting of immovable property service. Show cause notice was issued proposing to demand service tax on the rent collected along with interest and also for imposing penalties. After due process of law, the adjudicating authority confirmed the demand along with interest and imposed penalties. Hence this appeal. 2. On behalf of the appellant, ld. counsel Shri R. Sai Prashanth appeared and argued the matter. He submitted that service tax on 'renting of immovable property service' was introduced with effect from 01.06.2007. During the disputed period, vacant lands were excluded from the purview of service tax under the said cat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er:- "9. The other substantive issue presented for analysis is whether renting of vacant land by the appellant to a third party, albeit for a business or commercial purpose falls within the ambit of the taxable service, prior to 1-7-2010 i.e. before introduction of clause (v) in Explanation (1) to Section 65(105)(zzzz). To answer this issue, it is necessary to consider the legislative dynamics of the provision. To the extent relevant and material for the purposes of this lis, suffice it notice that prior to 1-7-2010, clause (zzzz) of Section 65(105) read as follows : Taxable service is a service provided or to be provided : "to any person, by any other person, by renting of immovable property or any other service in relation to such ren....
X X X X Extracts X X X X
X X X X Extracts X X X X
....010 amendments substituted the main provision of sub-clause (zzzz) and enjoined this substitution to operate with retrospective effect from 1-6-2007. Sub-clause (v) was also introduced, to Explanation (1) in the provision. This sub-clause reads : "vacant land, given on lease or license for construction of building or temporary structure at a later stage to be used for furtherance of business or commerce". 10. While the assessee contends that a lease of vacant land (for construction of a building or a temporary structure at a later stage to be used for furtherance of business or commerce) is a taxable service only since 1- 7-2010; according to Revenue clause (v) in Explanation 1 merely clarifies the clear and implicit intent of clause (z....