TaxTMI 
TaxTMI 
2026 (9) TMI 954
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....tax under renting of immovable property service on very same activity with effect from 01.07.2007. Alleging non-payment of the service tax for the period from 01.08.2006 to 31.06.2017, proceedings were initiated and show cause notice was issued on 24.10.2011 and thereafter Adjudication authority as per the impugned order confirmed the demand and also imposed penalties under various provisions of law. Aggrieved by said order, present appeal is filed. 2. When the appeal came up for hearing, Learned Chartered Accountant (CA) for the Appellant submits that the Appellant is engaged in the activity of managing the food launches by name 'Transit' in Forum Mall, Koramangala and licensed 13 kitchens in the said transit launch to various operators....
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.... "36. The same view was reiterated by the Supreme Court in Pappu Sweet's case (supra) and in Gem Granites v. Commissioner of Income-Tax, T.N. - (2005) 1 SCC 289. Therefore, it is open for us to consider the scope of entry (zzzzj) while interpreting entry (zzzy). 37. Entry (zzzzj) is entirely a new entry. Whereas entry (zzzy) covers services provided to any person in relation to mining of mineral, oil or gas, services covered by entry (zzzzj) can be identified by the presence of two characteristics namely (a) supply of tangible goods including machinery, equipment and appliances for use, (b) there is no transfer of right of possession and effective control of such machinery, equipment and appliances. According to the memb....
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....y is not by way of amending the earlier entry. It is not a carve out of the earlier entry. Therefore, the services rendered by the members of the 1st petitioner cannot be brought to tax under that entry." 3. Learned CA further draw our attention to the definition of renting of immovable property service and the same is reproduced below:- 'Renting of immovable Property Services' is defined in Clause (90a) of Section 65 of the Act as follows: "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. 4. Learned CA further submits that the definition of the above heading is inclusiv....
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....ugh they are rendering services to business entities, whereas, Budget 2010 sought to tax certain medical services under the heading 'Health Services' which was later modified. Similarly, in the instant case also, the activity of renting of immovable property cannot be taxed under business support service prior to the same being included in the service tax net. The principle is that 'Business Support Services' is not a residuary entry so as to fit into it any service which does not have a specific definition under the Finance Act. Hence, it is clear that the appellant is not liable to pay service tax prior to 01.07.2007 since service tax on renting of immovable property was introduced only from 01.07.2007. Learned Counsel als....