TaxTMI 
TaxTMI 
2019 (11) TMI 1604
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.... Tax, Kolkata, which has been upheld by the Ld. Commissioner (Appeals), Kolkata. 2. Briefly stated the facts of the case are that the appellant is engaged in the manufacture of jute products. Show Cause Notice dated 08.07.2014 (SCN) was issued for proposing demand of service tax on the amount recovered by the appellant from employees towards rent for letting out the quarters located in the factory of the appellant. The lower authority vide adjudication order dated 01.09.2015 confirmed the demand on the ground that the renting of immovable property to employees of the company for residential purpose is in the course or furtherance of business. In the appeal, the said adjudication order has been upheld by the Ld. Commissioner (Appeal) wherei....
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....peals have been allowed by the Ld. Commissioner (Appeals), Kolkata in their own case. 5. Sri S. Mukhopadhyay, Ld. Departmental Representative, for the Revenue relied on the decision in the case of CCE Bangalore vs. Tata Auto Comp Systems Ltd. 2012 (277) ELT 315 (Kar) wherein transportation services provided to the employees have been considered to have been used in relation to business activities and therefore, the quarters let out on rent to the employees would also have to be considered in the course or furtherance of business and hence demand of service tax has been rightly made on the appellant. He accordingly, prayed that the impugned demand be upheld and the appeal filed by the assessee be rejected being devoid of merit. 6. Heard bo....
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....the definition of taxable service as was applicable during the period in dispute. The relevant portion of the said decision is reproduced hereinbelow:- "7. Admittedly, the residential quarters of the appellants have been given on rent for occupation of the employees of the contractors. The Revenue contends that the employees of the contractors staying in such accommodation will help in furtherance of business or commerce of the appellants as well as the contractors. In this connection, we refer to the statutory definition as reproduced above. Explanation-I to the tax entry explains the scope of the term, "for use in course or furtherance of business or commerce". It includes use of space in an immovable property as factories, office, buil....
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....ion 66D of the Finance Act, 1994 as amended, covered entry (m) to state that services by way of renting of residential dwelling for use as residence has been kept outside the purview of levy of service tax. Therefore, during the entire period in dispute, the rent amount received for letting of the immovable property for residential dwelling purpose has been excluded for service tax levy. Since the fact relating to use of the immovable property is not in dispute, the appellant is not liable to pay the demanded service tax. Moreover, the demand on the same issue for the subsequent period has already been set aside by the Ld. Commissioner (Appeals), in appellant's own case. In our view, the decision in the case of Tata Auto Comp Systems (Supra....