TaxTMI 
TaxTMI 
2020 (8) TMI 527
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..../s SRI DMS HOSPITALITY PRIVATE LIMITED, No 4, Bidadi Main Road, Opposite Sri Rama Temple, Bidadi, Ramanagar, Rural, Karnataka,562109 (herein after referred to as Appellant) against the advance Ruling No. KAR/ADRG 86/2019 dated: 25th Sept 2019 = 2019 (10) TMI 1092 - AUTHORITY FOR ADVANCE RULING, KARNATAKA. Brief Facts of the case: 3. The Appellant is a company engaged in providing accommodation services and Rental or leasing services involving own or leased residential property. The Appellant has entered into an agreement with Dr Banraji B.H on 21-03-2018 for getting the building having two floors totally measuring 1023.00 Square meters at Plot Number 66-E, Phase II, Sector-II, KIADB, Shanamangala Village limit, Bidadi Industrial area, Bidadi, Ramanagara Taluk on a monthly rent of 2,35,000/- per month for a period of 3 years to be exclusively used for accommodation purpose. 4. Further the Appellant company has entered into an agreement with Sodexo Food Solutions India Private Limited dated 02-04-2018 for sub-letting 31 rooms at 1 St and 2nd floor of the building at Plot Number 66-E, Phase II, Sector-II, KIADB, Shanamangala Village limit, Bidadi Industrial area, Bidadi, Ramanagara....
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....he goods supplied is an instalment for the goods transferred and is a supply of goods under clause 1(c) of Schedule II to the CGST Act and hence is liable to tax at the rate applicable to each of the goods supplied at the time of delivery of such goods. The security services provided is covered under SAC 998529 under entry 23(ii) of Notification No.11/2017- Central Tax (Rate) dated 28.06.2017 and is hence liable to tax at respective rates. 7. Aggrieved by the said ruling, the appellant has filed this appeal on the following grounds. 7.1 The Appellant contends that GST is applicable only to premises used for accommodation services by Inns, guest house, lodging houses and exemption is provided in the case of renting of residential dwelling for use as residence, hence as per Notification No. 12/2017- Central Tax (Rate) dated 28th June 2017 as "Services by way of renting of residential dwelling for use as residence" is exempt from GST. They submitted that the term 'dwelling' is not defined in the GST law or notification. However, based on definitions under various dictionaries, the term 'dwelling' means a house, flat or other place of residence. 7.2. They submitted that typically ac....
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....y EMI charges collected from Sodexo Food Solutions India Private Limited for providing additional amenities and security services because the same has been used for residential dwelling purpose. PERSONAL HEARING 8. The appellant was called for a personal hearing on 31st Jan 2020 but the same was postponed to 18th Feb 2020 on their request. The appellant was represented by Shri. Koushal, Chartered Accountant who reiterated the submissions made in the grounds of appeal. DISCUSSIONS AND FINDINGS 9. We have gone through the records of the case and considered the submissions made by the Appellant in their grounds of appeal as well as at the time of personal hearing. The issue before us relates to two transactions viz. (i) renting of a two-floor building by the owner Dr Banraji B.H to the Appellant; and (ii) sub-letting of the same premises on rent by the Appellant to M/s Sodexo Food Solutions India Pvt Ltd. In both the above transactions we have been called upon to decide whether the same is an activity of renting of residential dwelling for use as residence which is exempted from GST by virtue of entry No 12 of Notification No 12/2017 CT (R) dated 28-06-2017. 10. Before we proceed....
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.... of building which is given on rent has not be indicated in this agreement between the owner and the Appellant. As rightly observed by the lower Authority, a rental agreement for residential dwelling will invariably make a mention of the type of dwelling, the number of rooms and the facilities available in the dwelling. An absence of this information in the agreement appears to indicate that the building which was rented out by the owner was not suitable for use as dwelling for residence. Further, it is also seen that the property at Plot No 66-E was allotted to the owner Shri. Banraji B.H by the Karnataka Industrial Development Board (KIADB) in August 2014. KIADB is a statutory body constituted for the development of industries in the industrial areas of Karnataka. Lands are allotted by the KIADB to entrepreneurs only after the proposals for the proposed utilization of the land for industrial projects is approved by the competent authority. Therefore, it can be justifiably inferred that the land was allotted to the owner for industrial purposes and not for residential purposes. Therefore, the building on this land allotted by KIADB cannot be construed as residential building and c....