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2023 (8) TMI 540 - AT - Service TaxRefund of the Service Tax - parking charges - excluded from the definition of immovable property for the purposes of service under RIPS or not - HELD THAT:- The inclusive part of the definition of ‘immovable property’ covers inter alia building and part of a building and the land appurtenant thereto and also land incidental to the use of such building or part of a building. Clause (iv) of Explanation 1 excludes, inter alia, “land” used for educational, sports, circus, entertainment and parking purposes. The legislature has used the words “land” and “vacant land” in accordance with the context, wherever applicable. When “land” in a legal sense includes structures, if any, raised thereon, the same covers the land appurtenant to a building or a part of the building as well. From a reading of the provisions, it is seen that, for the purposes of sub-clause (zzzz) of Section 65 (105), “immovable property” does not include land used for parking purposes - While clauses (a) and (b) under Explanation 1 make a reference to ‘vacant land’, clause (c) refers only to ‘land’. The purpose for the use of land is also mentioned as educational, sports, circus, entertainment and parking. Therefore, the word “parking” takes colour from the preceding words educational, sports, circus, entertainment. These activities in the normal course are of a nature that would normally be carried out in buildings to be put up either as a temporary or a permanent structure on land. It is perhaps for this reason that exclusion clause (c) uses the term ‘land’ instead of the term ‘vacant land’ as used in exclusion clauses (a) and (b). Thus, a building or its part put up on land and which is used for car parking will get the benefit of the exclusion from levy of Service Tax under Section 65(105)(zzzz) ibid., as it stood then - the rejection of the refund claim is held to be not in order - the impugned order is set aside and the appeal is allowed.
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