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2018 (7) TMI 705 - CESTAT NEW DELHIRenting of immovable property - Leasing out of water bodies for the purpose of aquaculture and fishing rights - negative list as provided under section 66D of the Finance Act - period between April, 2008 to 30.6.2012 - Held that:- The view of the Department that aquaculture and leasing of water bodies are two separate activities and, therefore, leasing of water bodies is not exempted from levy of service tax is certainly not tenable as we find that water bodies can only exists on vacant land and for undertaking aquaculture, the presence of water bodies is absolutely essential and pre-requisite. Leasing of water bodies for fishing purposes is same as leasing of vacant land for aquaculture and therefore, same is fully covered under the exclusion clause of Section 65 of the Finance Act, 1994 and hence not leviable to Service tax. Period between 1.7.2012 to August, 2013 - Held that:- Same provisions have continued in slightly modified way wherein the activity of agriculture has been included in the negative list of items under section 66 D of the Finance Act, 1994 and agriculture as defined in clause (3) of the Section 65 B, as ‘the cultivation of plants and rearing of all life-forms of animals, except the rearing of horses, for food, fiber, fuel, raw material or other similar products’ - fishing/ aquaculture is part of the broader definition of agriculture and thus exempted from levy of service tax. Agriculture being in the negative list of items under Section 66D of the Finance Act, 1994 is not leviable to service tax and thus for this period also, the service tax is not leviable on leasing of water bodies. Appeal allowed - decided in favor of appellant.
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