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2023 (11) TMI 825 - AT - Central ExciseNon-payment of service tax - rent received as per the agreement for renting of the Fit Outs - HELD THAT:- It has to be noted that the demand for the consideration received on Fit Outs is made under the category of “renting of immovable property service”. Fit Outs cannot be considered as an immovable property. Further, it is also stated by the appellant that they have discharged applicable Sales Tax / VAT on the consideration received for renting out the said Fit Outs, holding the same as ‘transfer of right to use the goods’ (deemed sale). The very same issue was considered by the Tribunal in the case of M/s. Ascendas IT Park (Chennai) Ltd. [2018 (1) TMI 827 - CESTAT CHENNAI], where it was held that From the facts explained, it is seen that these are movable items (chairs, tables and other items) which are handed over to the tenants for use by them. The appellant has paid VAT on the consideration received in the said transaction for transfer of right to use the goods. Payment of VAT is not disputed by the department. VAT and Service Tax being exclusive, further demand of service tax on the very same consideration received for transfer or right to use of goods cannot sustain. The demand cannot sustain and requires to be set aside. In the result, the impugned orders are set aside - Appeal allowed.
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