2026 (4) TMI 1000

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.... is a registered service provider of renting of immovable property service. Based on intelligence that the appellant was providing renting of immovable property service for commercial purpose and was not paying service tax on the consideration received, the Department called for the details of income returns, profit and loss a/cs and copies of invoices raised for the period in 2008 - 2009, 2012 - 2013 to determine the service tax liability. On the basis of the income tax returns provided indicating income from house property, when the appellant was further enquired, the appellant informed vide its letter dated 04.12.2013, that four immovable property belonging to him namely A-80, A-89, A-79, and AL -61 all located at Ann Nagar, Chennai was ....

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....hri Murugappan, Ld. Advocate appearing for the appellant submitted that the Adjudicating Authority, in spite of conceding that the lease agreement dated 30.03.2009 in respect of the property situated at AL - 61 entered into between lessor and M/s. Iswaryalaxmi Properties Pvt. Ltd indicated that the lessor has agreed to demise the property for a period of 11 months from 01 April 2009 (renewable up to a period of 2 years) for the residential use of its Managing Director; has nevertheless rejected the appellant's claim on the ground that the appellant has artificially mentioned in the agreement that the said property is let out for residential purpose of the Managing Director of the company to avoid service tax. It was also held that the appel....

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....he ambit of "immovable property" under Section 65(105)(zzzz). 8. We find that the Adjudicating Authority has found that the appellant while furnishing the reply dated 09.01.2015 in respect of the property situated at AL-61, Anna Nagar, in support of their claim that the property was let out for residential purpose has enclosed the lease agreement dated 30.03.2009. He has also found that the agreement entered into indicates that the Appellant had agreed to demise the property described in Schedule A to the lessee M/s. Ishwaryalakshmi Property Limited for use as a residence by the Managing Director of the company. The denial of the benefit claimed as a residential property is on account of the lease being between the Appellant and M/s. Ish....

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....sed for the purposes of accommodation, including hotels, hostels, boarding houses, holiday accommodation, tents, camping facilities. Explanation 2.-For the purposes of this sub-clause, an immovable property partly for use in the course or furtherance of business or commerce and partly for residential or any other purposes shall be deemed to be immovable property for use in the course or furtherance of business or commerce; 10. We notice that the SCN itself indicated the address of AL-61 as AL-61, 3rd Avenue, Anna Nagar, Chennai. Thus, it is not the case of the Department that AL-61 is not a standalone Building or that it is a building that is party used in the course or furtherance of business or commerce. We also notice that th....