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2015 (12) TMI 880 - AT - Service TaxDemand of service tax - Renting of immovable property - Claim of the appellant that a portion of the premises was rented out for running the hotel to M/s. Savi Associates has not been considered on the ground that the definition of renting of immovable property service covers the renting of premises for commercial purposes without considering the part of the definition which provides for exclusions for certain categories. On going through the definition - Held that:- I find that the definition excludes buildings used for the purpose of accommodation, including hotels. It has not been disputed by the lower authorities that the portion of the premises rented out to M/s. Savi Associates has been used for running a hotel. Therefore the rent collected from M/s. Savi Associates has to be excluded for the purpose of collection of service tax. - If the amount already paid covers the amount of service tax payable with interest, it can be said that appellants have fulfilled their obligation under the law in its entirety. This observation is made taking into account the provisions of Sections 80(1) and 80(2) of Finance Act, 1994. Since I consider that appellants had reasonable cause for non-payment of tax during the relevant time, therefore penalty is not imposable. Even otherwise provisions of Section 80(2) would also apply to the appellant. - Matter remanded back - Decided in favour of assessee.
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