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2015 (7) TMI 197 - CESTAT NEW DELHIService Tax on lease of land for 99 years - whether in nature of Renting of Immovable Property or sale - invocation of extended period of limitation - Held that:- As per Rule 3, the outright sale of the land is actually abandoned and it allows only lease-hold rights. The judgment of Rajasthan High Court in the case of Shri K.P. Sharma [2012 (5) TMI 578 - RAJASTHAN HIGH COURT] only states that 99 year lease is "virtual" sale. In other words, it is not sale per se. Such lease rent is clearly liable to service tax under 'Renting of Immovable Property' service as the definition of renting of immovable property given in Section 65 (90a) of the Finance Act, 1994 includes leasing of immovable property for use in the course or furtherance of business or commerce. - prima facie case is against the assessee. However, there is force in the contention of the appellant that there was confusion with regard to the leviablity of service tax on 'Renting of Immovable Property' and the Delhi High Court in the case of Home Solution Retail India (2009 (4) TMI 14 - DELHI HIGH COURT) actually held that there was no service in renting of immovable property. Though the said Delhi High Court judgment has since been reversed it clearly showed that there was a genuine confusion in this regard. there is a good case to grant stay in respect of the impugned demand pertaining to the period beyond normal period of one year. - Partial stay granted.
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