TaxTMI 
TaxTMI 
2023 (11) TMI 308
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....ct, 1962. After acquisition & settlement, the land vested with IDCO under Section 31 (2) of IDCO Act, 1980 free from all encumbrances and thereafter, handed over to the industrialists/entrepreneurs on long term lease basis. The State Government in Industries Department formulated Industrial Policy Resolution (IPR) since 2001 with an object to create positive accumulated investment in industries by making provision of Land Bank Scheme and allowing IDCO land for industrial purposes. All Government lands alienated first Lease Deed in favour of IDCO, then IDCO sub-lease to Industrialists as per direction of the Government under Sections 32 & 33 of IDCO Act,1980 Acquisition and allotment of land after acquisition in respect of private land and after vesting of the Govt. land, the following statutory Act & Rules are followed: i) IDCO Act, 1980 and IDCO Rules, 1981. ii) Odisha Industrial Facilitation Act, 2004 & Rules. iii) IPR, 2001 and 2007 and onwards. iv) Land Acquisition Act, 1894 and Land Acquisition (Amendment) Act, 1894. v) Land Acquisition (Company) Rules, 1963. vi) Industrial Policy Resolutions (IPR) of State on Allotment/Transfer of bot....
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....ying service tax under Mandap Keeper Service. The rent is collected as per the rate prescribed by the Central Government as well as State Government through Scheme for Development of Commercial Handicraft. Therefore, demand under Renting of Immovable Property Service under the said heading is not sustainable. 3.2 The appellant has contended that the service tax has been demanded under the following heads and given the clarifications thereof: Income from Ekamra Hat: The income pertains to rent received from Shops and Space inside Ekamra Hat Premises and rent realized from space in Ekamra Hat premises, which has been treated as Income from Ekamra Hat. IDCO has been paying Service Tax under Mandap Keeper Service Head. The rent is being collected as per the rate prescribed by both the Central Govt. as well as State Govt. through Scheme for Development of Commercial Handicraft. As a matter of fact, the repair and maintenance cost in Ekamra Hat is very high compared to the rent collected. Rents Received from Industrial Estates: Rents collected from Shops & Plots under Industrial Heads are collected from Entrepreneurs. The rent collected are to cover up ....
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....Industrial Estates and Industrial Areas have been deposited by IDCO in Govt Treasury. IDCO has been paying huge amount for deployment of employee to manage of Water Supply system. Ground Rent & (xiii) Cess Collection As per IPR, the ground rent was to be charged @ 1% of the land value. Further as per Section-73 of Orissa Land Reforms Act, 1960 payment of premium was to be as per the prescribed rate. Further the provisions were there for stamp duty. As per Section 70 the payment of premium of rent and cess of the land of IDCO as well as Govt. was in the nature of compulsory levy as per Sec. 17 of the IDCO Act. IDCO pays ground rent/cess to concerned Revenue Officers / Tahsildars on being collected from Entrepreneurs/ Industrialists @ 1% ground rent and @ 0.75 % as Cess as per demand raised by the concerned Tahsildars. All such collections are deposited with Govt of Odisha under different Revenue Collection Heads. Maintenance Charges Realized: Maintenance Charges realized @ Rs.4.00 per Sq.Ft. from tenants of IDCO's Buildings namely Fortune Tower / OCAC Building/ Shops & Sheds at Ekamra Hat used on rent for Commercial purposes for operation 24 x 7 100% power back....
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....s by way of long term 30 years or more lease of industrial plots from service leviable U/s.66(b) of the Act as is leviable onetime premium summary price cost by any other names payable for such lease. 3.5 He, therefore, prayed that the proceedings against the appellants be dropped. 4. On the other hand, the ld. A.R. for the Revenue, supported the impugned orders. 5. After hearing both sides, we find that the appellant is a statutory Corporation established under IDCO Act, 1980 and discharging functions of acquisition of land and allotted the same as per the guidelines of the Act to the various Industrial Units on lease basis and charged certain amounts in lieu of this and the Revenue is of the view that the said charges are taxable under the provisions of Finance Act, 1944. Therefore, each heading on which service tax has been demanded is being dealt separately as under : (1) Administrative Charges Realized : With reference to service tax demanded under the category of "Real Estate Agency's Service" for Administrative Charges Realized, we find that the said charges have been collected by the appellants with reference to the acquisition of land as prescribed unde....
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.... its own Mechanical Maintenance Division, which activity was closed since 2008 and has been undertaken through other Agencies on payment of cost. We find that the said activity has been hired by the appellants for testing of the soil of the industrial area, which were beneficiaries to the land allottees, which do not qualify as "Technical Testing and Analysis Service". Therefore, we hold that on the said amount received by the appellant, the appellant is not liable to pay service tax. (6) Income from Ekamra Hat : We find that this is a rent received from Shops and Space inside Ekamra Hat Premises and rent realized from space in Ekamra Hat premises and the appellant is paying Service Tax under Mandap Keeper Service. We find that such services are duly classified under Mandap Keeper Service because the appellant is collected rent/charges from the exhibition of Ekamra Hat from time to time and realized the amount as rent from the person. Space has been provided by the appellant and the said services is qualified as Mandap Keeper Service and the appellant is paying service tax under the said Head. Therefore, the said activity does not qualify a....
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....uired for water supply to the Industrial Estate, Buildings and Tenants. These are the water charges. Therefore, it cannot be termed as Renting Immovable Property. Therefore, the said activity is not liable to service tax under Renting Immovable Property. Therefore, no service tax is payable on the appellant on the said services. (12) Ground Rent Collection : (13) Cess Collection : As per IPR, the ground rent is to be charged @ 1% of the land value As per IPR, the ground rent is to be charged @ 1% of the land value and as per Section-73 of Orissa Land Reforms Act, 1960 payment of premium was to be as per the prescribed rate. Further, the provisions were there for stamp duty and as per Section 70 the payment of premium of rent and cess of the land of IDCO as well as Government was in the nature of compulsory levy as per Section 17 of the IDCO Act. IDCO pays ground rent/cess to concerned Revenue Officers on being collected from Entrepreneurs/ Industrialist as per demand raised by the concerned officers. Therefore, the said collections are statutory levy, which the appellants collected from the allottees and transferred the same to the concerned officers....