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2020 (11) TMI 436 - CESTAT NEW DELHIRenting of immovable property service - Appellant had entered into agreements with films Distributors under which the theatrical exhibition rights for exhibition of the films were transferred to the Appellant, either for a specified number of shows and period or in perpetuity - Bundled services - period October 2008 to March 2014 - HELD THAT:- A perusal of the agreements between the Appellant and the Distributors would also make it abundantly clear that it is the Appellant who makes payment to the Distributors for grant of theatrical rights. This clearly indicates the flow of service and the consideration. Thus, as it is the Appellant who pays a fixed consideration to the Distributor, no service tax can be levied on the Appellant. This issue also came up for consideration before a Division Bench of the Tribunal in M/S. MOTI TALKIES VERSUS COMMISSIONER OF SERVICE TAX, DELHI I [2020 (6) TMI 87 - CESTAT NEW DELHI]. It was held that the demand of service tax under ‘renting of immovable property’ service was not justified for the reason that the Appellant had not provided any service to the Distributor, nor the Distributor had made any payment to the Appellant as a consideration for the alleged service - It is, therefore, not possible to sustain the finding recorded by the Principal Commissioner that ‘renting of immovable property’ service had been rendered by the Appellant to the film distributors. Renting of immovable property service - demand under the income heads of 'weighing machine receipts’ and 'miscellaneous income' - period 2008-09 to 2013-14 - HELD THAT:- The demand of service tax on the income head of 'weighing machine receipts is not sustainable as the said income is on account of collections from the coin box kept with the weighing machine. By inserting a coin in the coin box an individual would know the weight. This income cannot be classified as 'renting of immovable property’ service - The income received under the head 'miscellaneous receipts' is in connection with the screening of movies for the annual film festival held by Hindustan Times. The said income cannot also be said to be towards provision of any 'renting of immovable property' service. It is, therefore, not leviable to service tax. Appeal allowed - decided in favor of appellant.
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