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2019 (3) TMI 870 - AT - Service TaxRenting of Immovable Property service - Appellant had received the rent for their premises - period October, 2011 to September, 2012 - Held that:- It is evident that the services will not include any building used for residential purpose. From the details submitted by the appellant before the jurisdictional Superintendent, it is seen that the bulk of rent received is claimed towards rent from the properties in residential use. The certificates indicate that the usage of quarters was for residential purpose only. It cannot be said that such premises were partially used for residential purpose and partially for commercial use. Admittedly, these certificates were not produced either before the original adjudicating authority or before Commissioner (Appeals), but the appellant, vide his letter dated 13.10.2012, addressed to the jurisdictional Superintendent had given the bifurcation about the property being used either for commercial or residential purpose - It is clear that none of the properties were used partially for residential and partially for commercial use. There is nothing on record to show that the Department has carried out any verification into the submissions made by the appellant. Nothing has been brought on record to falsify the claim of the appellant. The rent received for use of premises for residential purpose cannot be levied to service tax under the category of ‘renting of immovable property’. However, in respect of rent received for use of premises for commercial use is liable for payment of service tax. However, it is claimed that the total rent received will be far below the threshold exemption - Thus, for renting out of commercial property, no liability of service tax will arise subject to verification by the jurisdictional authorities of the total amount of consideration received in this regard. Appeal allowed - decided in favor of appellant.
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