Service Tax on One-Time Property Rental Premium Valid: Premium and Recurring Rent Combined for Exemption Threshold Calculation

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....The CESTAT dismissed the appellant's challenge to service tax levied on one-time premium collected for renting immovable property. Following the Allahabad HC decision in Greater Noida Industrial Development Authority case, the Tribunal held that letting immovable property for consideration determined through public offers constitutes a taxable service, not a statutory function or public service. The Tribunal rejected the appellant's argument regarding threshold exemption limits under Notification No. 4/2007-ST, finding that both one-time premium ("salami") and recurring rent are subject to service tax under the renting of immovable property service category, with the exemption limit applying to their combined total.....