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2017 (4) TMI 952 - CESTAT NEW DELHIRenting of immovable property service - case of Revenue is that though the accommodation is for residential purpose, ultimately such letting out improves the business or commerce of the appellant as well contractors, who took the accommodation on rent. Since the property is used for furtherance of business or commerce, the renting of immovable property service is liable to tax - Held that: - the actual usage of the property for a particular purpose will decide the nature, either ‘residential‘ or used in ‘furtherance of commerce or business‘. The nature of contracting parties or the occupation of the occupant has no relevance to decide the scope of the tax entry - Explanation-I to the tax entry explains the scope of the term, for use in course or furtherance of business or commerce’. It includes use of space in an immovable property as factories, office, buildings, warehouses, theatres, exhibition halls and multiple use buildings. Admittedly, in the present case, the property has not been used for any one of these purposes - demand withheld - appeal allowed - decided in favor of appellant.
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