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2019 (11) TMI 249 - CESTAT NEW DELHIRenting of Immovable property - SCN was issued to the Appellant by the Department alleging that the amounts received by them in the aforesaid joint venture is a consideration for “renting of immovable property’ service rendered to MPWLC - Charge of service tax. HELD THAT:- Section 65(105)(zzzz)of the Finance Act, 1994 provides for charging service tax on “ any service provided or to be provided to any person, by any other person by renting of immovable property or any other service in relation to such renting for use in the course of or for furtherance of business or commerce” - For a tax to be levied under this heading, there must be a service provider and a service recipient and the service which is provided must be renting of immovable property and such renting must be for use in the course of furtherance of business or commerce. No service tax can be levied on renting of immovable property in the present case. Also, no evidence that there was any renting of the warehouses by the Appellant to MPWLC was for use in the course of or furtherance of business or commerce. Thus, there is no renting, no service provider and no service recipient in their arrangement and hence is not covered by the charging section. There is no hesitation in holding the impugned order unsustainable, with respect to the demand of service tax, interest as well as imposition of penalties and needs to be set aside - appeal allowed - decided in favor of appellant.
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