TaxTMI 
TaxTMI 
TaxTMI 
2026 (3) TMI 199
X X X X Extracts X X X X
X X X X Extracts X X X X
....e appellant owns a multistorey building and has leased out the same to M/s. Vasantha Bhavan Hotels India Pvt. Ltd. for rent as a hotel and was also used in the course of or for the furtherance of business or commerce, but allegedly had not paid service tax for commercial use, even though the same attracted service tax under 'Renting of Immovable Property Service for furtherance of business or commerce' under section 65(105)(zzzz) of the Finance Act, 1994. Hence Show Cause Notice and Statement of Demand were issued for the period June 2007 to December 2011 and from January 2012 to June 2012 demanding an amount of Rs.46,81,870/- and Rs.10,02,705/- respectively along with interest and for imposing penalties. After due process of law, the impug....
X X X X Extracts X X X X
X X X X Extracts X X X X
....order of the Delhi Bench in Orient Express Co, Final Order No. 54918/2016, dated 20.10.2016. the Chennai Bench decision in GRAND ROYALE ENTERPRISES LTD. Vs COMMISSIONER OF S.T., CHENNAI-I [2019 (31) G.S.T.L. 453 (Tri. - Chennai)], which according to him have settled the interpretation of Section 65(105)(zzzz) in favour of the assessee. He hence prayed that the order of the revenue is liable to be set aside along with refund of the pre-deposit made by the appellant wile filing the above appeal. 3.2 The Ld. A.R. Smt. O.M. Reena, stated that the contention of the assessee that the impugned service is excluded from taxability under clause (d) of the exclusion clauses to Section 65(105)(zzzz) of the Act is not acceptable. The said contention ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....relevant provisions of law as stated at paras 6.04 and 6.05 of the impugned order are reproduced below: "6.04 During the material time i.e. from 01.06.2007 to June 2012, clause (90a) of Section 65 of the Act defined the words 'renting of immovable property and same read as under. "renting of immovable property" includes renting, letting, leasing, licensing or other similar arrangements of immovable property for use in the course of furtherance of business or commerce but does not include- (i) renting of immovable property by religious body or to a religious body, or (ii) renting of immovable property to an educational body, imparting skill knowledge or lessons on any subject or field other than a comm....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ease or license for construction of building or temporary structure at a later stage to be used for furtherance of business or commerce. but does not include (a) vacant land solely used for agriculture, aquaculture, farming, forestry, animal husbandry, mining purposes; (b) vacant land, whether not having facilities clearly incidental to the use of such vacant land (c) wind used for educational, sports, circus, entertainment and parking purposes, (d) building used solely for residential purposes and buildings used for the purposes of accommodation, including hotels, hostels, boarding houses, holiday accommodation, tents, camping facilities Explanation 2 For the purposes of this s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hey are hence a part of the hotel. 7. Accordingly, Explanation 2 to Section 65(105)(zzzz) is not attracted. The premises continue to qualify as a building used by a hotel, squarely falling within the specific exclusion provided under Section 65(105)(zzzz) of the Finance Act, 1994. 8. We find that a Coordinate Bench of this Tribunal at Chennai, in GRAND ROYALE ENTERPRISES (supra), had examined a similar issue. The relevant portion of the order is reproduced below: 5.4 In Jai Mahal Hotels Pvt. Ltd. (supra), in a Bench presided over by the then President of CESTAT, in a case where the appellant had similarly leased its hotel to IHCL, the Tribunal held as under: "9. In our considered view the above interpretation adopted....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d does not amount to an "immovable property", falling within the ambit of the taxable service in issue. 11. This Tribunal in Ambience Construction India Ltd. v. Commr. of S.T., Hyderabad - 2013 (31) S.T.R. 343 (Tri.Bang.), having considered the identical provision categorically ruled that renting of immovable property for a hotel is expressly excluded from the ambit of the taxable service in Section 65(105)(zzzz). We are in respectful agreement with the said judgment passed by a Learned Single Member of this Tribunal. 12. It also requires to be noticed that in respect of the same appellant as herein, the appellate Authority, namely the Commissioner (Appeals), Central Excise and Customs, Jaipur-I vide the order dated 19-12-....