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2011 (8) TMI 71 - GUJARAT HIGH COURTLevy of service tax on Renting of immovable property - legislative powers - constitutional validity - Held that: - Renting of any property ipso facto would not amount to service for the purpose of service charge. This is also accepted by learned counsel for the revenue. However, in case of renting of immovable property, if service recipient uses it in the course of or furtherance of business or commerce, it can safely be stated that the service provider has rendered service, enabling the service recipient in value addition. Thus, if renting of immovable property is made in the course of or for furtherance of business or commerce, value addition is made by service provider in favour of service recipient. Such activity undertaken by the service provider for value addition in the course of or for furtherance of business or commerce, i.e. to carry on activity or business or commerce of the service recipient amounts to rendition of service and will fall within the meaning of definition of 'service tax'. - constitutional validity upheld in respect of business only - Renting of building or land in course of agriculture or residential purpose would not be subject to service tax.
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