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2015 (4) TMI 1231 - HC - Service TaxRenting of immovable property service - Non-payment of service tax - rent for allotment of plots of vacant land to various persons on lease for industrial and commercial purposes - Held that: - the definition of expression of “renting of immovable property” read with Explanation will include the lease of various plots allotted by the assessee for business/commercial purposes and rent charged/collected in respect of the lease so executed would necessarily be subjected to Service Tax - the term/period of the lease whether it is for short duration or for 90 years or perpetuity makes absolutely no difference to the meaning of the expression “renting of immovable property” - The contention of the assessee that since long term lease of 90 years/perpetuity would virtually amounts to transfer of ownership of the land does not appeal to us especially in view of the simple meaning of the language use in the aforesaid sections. The plea of the appellant that it is performing statutory duties and is a creation of a statute and therefore cannot be subjected to Service Tax does not appeal to us - Suffice is to mention that the Finance Act, 1994 makes no distinction between a statutory body i.e. a juristic person and an individual. If a sovereign/public authority provides a services, which is not in the nature of an statutory activity and the same is undertaken for a consideration (not a statutory fee), then in such cases, Service Tax would be leviable as long as the activity undertaken falls within the scope of a taxable service as defined. The statute permits such activities of letting out of immovable property for augmenting its finances but the same cannot be termed as the service in public interest nor it is a mandatory or statutory functions of the Development Authority - such activity of leasing do constitute a taxable service. Appeal dismissed - decided against appellant.
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