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TMI Blog2016 (4) TMI 1173X X X X Extracts X X X X X X X X Extracts X X X X ..... ishment for manufacturing IMFL, Winery and a Mini Brewery Unit. The Tripura Industrial Development Corporation (TIDC) vide letter dated 25-1-2016 provisionally allotted 4 acres of land on lease basis for establishment of the IMF, Winery and Mini Brewery Unit. It appears that the petitioner was directed to deposit a sum of Rs. 20 lacs as land premium money for the leased out land. For reasons best known to the petitioner, that letter has been withheld from the Court. It also appears that the Tripura Industrial Development Corporation (TIDC) also directed the petitioner to not only deposit Rs. 20 lacs as land premium money but also a sum of Rs. 2,47,200/- as service tax. The petitioner deposited the amount of Rs. 20 lacs but did not deposit t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use, "for use in the course or furtherance of business or commerce" includes use of immovable property as factories, office buildings, warehouse, theaters, exhibition halls and multiple-use buildings. Again, as per Section 65(105)(zzzz) of the Finance Act, 1994 as amended 'Taxable service' means 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. Explanation 1. - For the purpose of this sub-clause, "immovable property" includes - (i) building and part of a building, and the land appurtenant thereto; (ii) land in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce and under Section 65(105)(zzzz) it is a taxable service. 5. It is urged on behalf of the petitioner that what is taxable is the rent and not premium. This argument is without any basis whatsoever. What is taxable is the consideration for the transfer. Even if premium is charged that is like charging of one time rent and then rebate is given for the yearly rent to be paid. Premium is also part of the lease money. Therefore, the entire transaction both premium and rent are amenable to service tax and service tax will have to be paid on the same. 6. Another submission has been made by Mr. Bhattacharji, that this premium includes capital investment. We do not understand what is the meaning of this argument? It is true that the pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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