TMI Blog2017 (9) TMI 885X X X X Extracts X X X X X X X X Extracts X X X X ..... the consideration has been artificially split up and brought under tax liability under two tax entries. When two properties are specifically, identified considering the nature and scope of service for which lease rent is received, we find that the lower authorities are correct in their conclusion. It is clear that the aircraft premises and the other equipments are very essential and imperative infrastructure for providing training to the participants and also to make publicity about the status of the training institute. As already noted, the training of cabin crew is imparted both in the class rooms and inside the aircraft for practical exposure. The aircraft in possession of the main appellant serves this very basic infrastructural requ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to penalties only. - Service Tax Appeals No.2302-2303 and 3856 of 2012 - ST/A/55900-55902/2017-CU[DB] - Dated:- 17-8-2017 - Shri S.K. Mohanty, Member (Judicial) And Shri B. Ravichandran, Member (Technical) Shri Atul Gupta, C.A. for the appellants. Shri Amresh Jain, Authorized Representative (DR) for the Respondent. ORDER Per: B. Ravichandran All these three appeals are dealing with inter-connected matters and are accordingly taken up for disposal together. The brief facts of the case are that M/s Aviacon India, a proprietorship firm owned by Shri Bahadur Chand Gupta, entered into a lease agreement with M/s Frankfinn Institute of Air Hostess Training. The agreement provided for a leasing out 550 sq. yar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted on the following lines :- (a) M/s Aviacon entered into an agreement with M/s Frankfinn. The said agreement is for leasing out the fuselage of Airbus alongwith the connected premises of land. The Revenue cannot split up artificially the said lease into two categories to tax under BAS and renting of immovable property ; (b) leasing out the aircraft cannot be called as business support service. The aircraft is fixed to the earth. Leasing of such facility cannot be considered, either business support service or renting of immovable property service. The lessee is not using the property for any commercial purpose and, as such, no service tax liability can be demanded from the appellants ; 3. The learned AR submitted that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both the sides and perused the appeal records. We note that the main appellant has entered into an agreement with M/s Frankfinn on 05/01/2005. We have perused the agreement in detail. The scope of the agreement is as below:- WHEREAS for LESSOR has represented himself to be the joint owner alongwith his mother Mrs. Bhateri Devi (Consenting Party) of the land situated at Block A, Sector 8, Opp. CRPF Camp, Dwarka, New Delhi 110 075, having Khasra No.4/13, Village Bagdola admeasuring 550 sq. yards, hereinafter called THE PREMISES and the (fuselage) MSN 111 Airbus 300 B2 Ex VT-EFW, upon that premises, (hereinafter called The Airbus ) . AND WHEREAS the Premises has been owned jointly by the LESSOR and his mother, Mrs. Bha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 300 is apparently not in a flying condition. The same is parked and immobilized in the premises of the main appellant. The said aircraft is put to use as an extension of training class for imparting training to cabin crew and others. In other words, the aircraft is an extended premises of training facility of the lessee. With this background, when we examined the statutory definition of business support service as provided under Section 65 (104c) it is clear that this activity will be covered by the said tax entry. Support services of business or commerce means services provided in relation to business or commerce and includes evaluation of prospective customers .. infrastructural support services . The explanation below the tax entr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appellant, we note that the lessee is also to have an office premises of their choice location within the leased out land. The lessee is also allowed to use the land with office for commercial purpose as listed in the agreement. The said activity is specifically covered by the tax entry renting of immovable property services in terms of Section 65 (105) (zzzz) readwith Section 65 (90a). The property lease out by the main appellant is for the furtherance of business and commerce and accordingly liable to tax. As such, we hold that the lower Authorities are correct in confirming the tax liability of the main appellant as well as Mrs. Bhateri Devi under the category of renting of immovable property service on the consideration received ..... X X X X Extracts X X X X X X X X Extracts X X X X
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