TaxTMI 
TaxTMI 
2021 (3) TMI 268
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....ppellant is Special Purpose Vehicle (SPV) a public private partnership. The appellant SPV was formed for acquiring land and setting up infrastructure for establishing textile parks wherein different member textile unit could operate. The Ministry of Textiles had engaged IL & FS as Project Management Consultant (PMC) for implementation of scheme. The said PMC reports to Ministry of Textiles. Ministry of Textiles supervises the operation of the parks through said PMC. The SPV also consists of representatives of Local Industries, Financial Institutions, state and Central Government representatives. The appellant company was incorporated on 07.10.2005 under the said module with representation of Ministry and representation of Banks on board of ....
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....ing and constructing the infrastructure in the park. D. Usage charges and variable expenses are also liable to be paid by the member unit to the SPV on the basis of the consumption of common facilities and utilities. 1.1 On account of purchase of equity shares the unit becomes member of the SPV. The non-refundable contribution given by the members is invested and used for construction/ development of infrastructure and common facilities in the industrial park as the scheme. The amount collected as rent and user charges/ variable expanses from the members are treated as consideration for rendering service in nature of renting of immovable property and other miscellaneous services and appropriate service tax has been paid by the a....
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....(29) GSTL 545 (SC). 3. Shri H.K. Jain, Learned Assistant Commissioner (Authorized Representative) appearing on behalf of the Revenue reiterates the findings of the impugned order. He also filed a written submission dated 18.01.2021 and argued the same. In support of his argument, he also placed reliance on the following judgments: • Hobbs Brewers India Private Limited vs Union of India 2016 (45) STR 60 (Tripura) • Greater Noida Industrial Dev. Authority vs CCE 2015 (40) STR 95 (All.) • Cinemax India Ltd. Vs UOI 2011 (24) STR 3 (Guj.) 4. We have carefully considered the submission made by both the sides and perused the records. We find that the case in hand and the case decided by this Tribunal vi....
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....e levy of service tax was not there during this period when the entire scheme was devised and the first share subscription agreement was entered into. 4.2 Service tax was introduced on renting of immovable property w.e.f. 01.06.2007. At the material time vacant land was not laible to service tax. In this regard CBEC vide DoF No. 334/01/2007-TRU dated 28.02.2007 had clarified as follows: "6.3 Renting of immovable property service : Renting of immovable property for use in the course or furtherance of business or commerce [section 65(105)(zzzz)] is the taxable service. Renting includes letting, leasing, licensing or other similar arrangement. The contract is for right-to-use an immovable property for a consideration. Immovab....
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....on of Finance Act, 2010 w.e.f. 08.05.2010 levy of service tax on renting of vacant land was introduced. The issue was clarified vide Dof No. 334/1/2010-TRU dated 26.02.2010 in following words: "Amendments are being made in the definition of the taxable service 'Renting of immovable property' [section 65 (105) (zzzz)] to,- (i) provide explicitly that the activity of 'renting' itself is a taxable service. This change is being given retrospective effect from 1-6-2007; and (ii) provide that renting of vacant land, where the agreement or contract between the lessor and lessee provides for undertaking construction of buildings or structures on such land for furtherance of business or commerce during the tenure of the le....
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.... property service and therefore, the allegation that the appellant disguised the receipt of rent as non-refundable contribution is totally misplaced. A perusal of the SCN shows that there is no evidence whatsoever to support the allegation that what was collected was in fact rent and not non-refundable contribution. It is also seen that the entire scheme was devised under the supervision of Ministry of Textiles and it's representatives. In these circumstances the allegation appears to totally baseless. The demand is set aside." 5. In view of the above decision of the Tribunal the demand of service tax under the head of renting of immovable property service on the onetime contribution paid to the appellant by its members is not taxable. ....