TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 1556
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....z) of Finance Act, 1994 as then existing as well as circular [no. 334/1/2010-TRU dated 26th February 2010] of Central Board of Excise & Customs (CBEC) on the finding that '3.5 The noticee have already submitted that the vacant land has been leased specifically for purpose of constructing port and carrying out port and marine related activities only and hence the transaction under reference will be covered under the exclusion clause "b) vacant land, whether or not having facilities clearly incidental to the use of such vacant land;". 3.6 As regards the allegation in the show cause notice that, the transaction of the noticee is satisfying the criteria of clause V of Explanation 1 of the definition i.e. "vacant land given on lease or license for construction of building or temporary structure at a later stage to be used for furtherance of business or commerce;", I find that the show cause notice has not brought out in any way that the contract/lease agreement had any clause regarding construction of any factory or commercial building on the leased land for furtherance of business or commerce ............... which is the criteria for determining the actual natur....
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....not possible that the vacant land is transferred by the lessor to the lessee without any purpose. The respondent assessee when himself had submitted that the said vacant land had been leased for constructing port and carrying out port and marine related activities which certainly falls under the ambit of the definition of the furtherance of the business and commerce then the impugned order needs to be set aside on the merit.' by placing reliance upon a later circular [no. 151/2/2012-ST dated 10th February 2012] of Central Board of Excise & Customs (CBEC) as well as on decision of the Hon'ble High Court of Gujarat in Cinemax India Limited v. Union Of India [2011 (24) STR 3 (Guj)]. 4. According to Learned Counsel for the appellant, the demand pertains to 'interest free deposit' received from the lessee that was held to be consideration for 'renting of immovable property service' - an activity which undergone several changes ever since its incorporation in section 65(105) of Finance Act, 1994. He submitted that the first appellate authority had mis-directed itself inasmuch as, instead of considering the grounds of appeal, the impugned order was decided by discard....
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....r w.e.f. 1-7-2010 when Clause (v) had been added to the Explanation-I to Section 65(105)(zzzz) has been examined by this Tribunal in detail in its Final Order No. ST/A/58664/2013-CU(DB), dated 11-12-2013 in the case of New Okhla Industrial Development Authority v. Commissioner of Customs, Central Excise & Service Tax, Noida, wherein it was held that since prior to 1-7-2010, vacant land solely used for agriculture, aquaculture, farming, forestry, animal husbandry and mining purposes", "vacant land used for educational, sports, circus, entertainment and parking purposes" and "vacant land whether or not having facilities clearly incidental to the use of such vacant land" was excluded from the definition of term "immovable property" under the exclusion clause of Section 65(105)(zzzz) and since only w.e.f. 1-7-2010, a clause (v) was added to Explanation I defining the term "immovable property" and this newly introduced clause covered "vacant land given on lease or licence for construction of a building or a temporary structure at a later stage for furtherance of business", the giving of vacant land on lease or licence for construction of a building or a temporary structure at a later st....
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....or commerce; Section 75 of the Finance Act, 2010 introduced several amendments to Chapter V of the Act. In so far as Section 65(105)(zzzz), the 2010 amendments substituted the main provision of sub-clause (zzzz) and enjoined this substitution to operate with retrospective effect from 1-6-2007. Sub-clause (v) was also introduced, to Explanation (1) in the provision. This sub-clause reads : "vacant land, given on lease or licence for construction of building or temporary structure at a later stage to be used for furtherance of business or commerce". 10. While the assessee contends that a lease of vacant land (for construction of a building or a temporary structure at a later stage to be used for furtherance of business or commerce) is a taxable service only since 1-7-2010; according to Revenue clause (v) in Explanation 1 merely clarifies the clear and implicit intent of clause (zzzz). 11. In our considered view, clause (zzzz) of Section 65(105), prior to 1-7-2010 does not embrace renting of land within scope of the enumerated taxable service. On true and fair construction of the main part of clause (zzzz) it is clear that renting of any immovable p....
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.... land from the ambit of immovable property prior to 1-7-2010, it cannot gainfully be contended by Revenue, that clause (v) to Explanation 1 (introduced in 2010), was a mere clarificatory endeavour, explicating the implicit and inherent meaning of Section 65(105)(zzzz). Clause (v) is clearly an amendment which expands the scope of the taxable service; and prospectively. 14. Clause 75 of the Bill (which later came to be enacted as Finance Act, 2010) has proposed insertion of sub-clause (v) in Explanation 1 in Section 65(105)(zzzz) of the Act. The memorandum explaining the provisions in Finance Bill, 2010 also indicates that the amendments are being made in the definition of "renting of immovable property" service inter alia levy of Service Tax on renting of vacant land where there is an agreement between lessor and lessee for undertaking construction of building or structure on such land for furtherance of business or commerce during the tenure of the lease. The Board Circular No. 334/2010-TRU, dated 26-2-2010 (in paragraph 3) explains the purpose of the amendments to Section 65(105)(zzzz). Accordingly, the Circular explains that amendments are being made in the definition o....