TaxTMI 
TaxTMI 
2025 (11) TMI 372
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....facts in brief are as follows: 1.1 M/s. Hotel President Planet, the appellant herein, is registered with the service tax department for rendering services of Renting of Immovable property. The appellant had a hotel property in New Delhi which they leased out to Hotel Lemon Tree vide lease agreement dated 25.03.2008. During the course of audit of records of the appellant for the period from October 2016 to June 2017 it was observed from the said lease agreement that in addition to agreed contracted lease rent, the appellant had received various additional considerations as follows: (a) As per the Article XV of agreement lessor was entitled to use privilege of stay during the term 'use of 75 room nights per annum for family and fr....
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....department. 3. Learned counsel for the appellant has mentioned that the demand of tax on complimentary night stay and the discount on food and beverages has wrongly been confirmed. It is mentioned that the lease rent amount was based on monthly turnover of the lessee/Hotel Lemon Tree. However, lessor/the appellant was required to visit the hotel premises time to time for verification of the leased out premises as well as for the verification of settlement of books of account based on which the rental income was to be calculated. It is for the convenience that the clause in the agreement was incorporated allowing the appellant maximum up to 75 stays per annum. This facility was available only to the directors or their family members/frien....
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.... aside. With these submissions, the appeal is prayed to be allowed. 4. While rebutting these findings, learned Departmental Representative has reiterated the findings arrived at by the adjudicating authority below and has prayed for dismissal of the appeal. 5. Having heard both the parties and perusing the entire records, It is observed that the only issue to be adjudicated is: "Whether the complementary nights extended by the lessee to the lessor along with the respective food discount is to be considered as the part of gross value/taxable value as has been held by the adjudicating authority below?" 6. For adjudication thereof foremost I have perused the relevant provision for the purpose i.e. Section 67 of the Finance Ac....
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....ion, - (a)"consideration" includes- (i) any amount that is payable for the taxable services provided or to be provided; (ii) any reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service, except in such circumstances, and subject to such conditions, as may be prescribed; (iii) any amount retained by the lottery distributor or selling agent from gross sale amount of lottery ticket in addition to the fee or commission, if any, or, as the case may be, the discount received, that is to say, the difference in the face value of lottery ticket and the price at which the distributor or selling agent gets such ticket. ....
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.... means 'of kind specified or understood'. Thus it is clear if any other amount in money or otherwise, is charged which is not paid in relation to taxable service provided or to be provided, the service tax will not be payable on such charge. 8. Reverting to the facts of the present case, admittedly the service agreed to be provided by the appellants to Hotel Lemon Tree is of renting/leasing of immovable property. The agreement to this effect is dated 25.03.2008 vide which the appellant had leased out their property to Hotel Lemon Tree for running a hotel along with the following conditions: (a) Lease rent will be based on monthly turnover with a minimum guaranteed rent. (b) Property Tax payment and Insurance of the prop....