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2017 (4) TMI 1136 - AT - Service TaxRenting of immovable property services - consideration in the form of percentage of gross income PLUS gross operational profit or minimum guaranteed profit - The appellants claimed exclusion under the category of buildings used for the purpose of accommodation including hotels - Held that: - it is not the case of the renting out empty land to be later developed with construction of hotel - Admittedly, the building and the land as appurtenant thereto are used for the purpose of running the hotel. The term “hotel” is not defined in the Finance Act, 1994. As generally understood, a hotel is for temporary accommodation of people paying for their rooms and meal. Many hotels will have various other incidental facilities relating to entertainment, personal care, etc. The presence of these facilities does not exclude the building from the category of “hotel” - similar issue came up for decision before the Tribunal in Jai Mahal Hotel Pvt. Ltd [2014 (7) TMI 540 - CESTAT NEW DELHI], where it was held that buildings used for or as hotels do not amount to immovable property. The legislative provision in question i.e. the exclusionary clause (d), to the extent relevant and material, excludes from the purview of immovable property, buildings used for the purposes of accommodation including for hotels - demand set aside - appeal allowed - decided in favor of appellant.
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