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TMI Blog2018 (7) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... amounts are collected by the Fisheries Department of Government of Rajasthan on annual basis. It has been the contention of the department of Central Excise and Service Tax, Jaipur-I, that leasing out of water bodies for the purpose of aquaculture and fishing rights, amounts to renting of immovable property as defined under Section 65 (90a) of the Finance Act, 1994. On the basis of above, a show cause notice demanding service tax of Rs. 10,33,44,783/- was issued on 31.3.2014 which has been adjudicated by the impugned order dated 19.1.2015, wherein the above amount of Service Tax has been confirmed and a penalty of equal amount has been imposed under Section 78 of the Finance Act, 1984, penalties under Section 76 and 77 have also been impos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the use of such vacant land; (c) Land used for educational sports, circus, entertainment, and parking purposes; and (d) Building used solely for residential purposes and buildings used for the purpose of accommodation, including hotels, hostels, boarding houses, holiday accommodation, tents, camping facilities. EXPLANATION 2 - For the purposes of this sub-clause, an immovable property partly for use in the course or furtherance of business or commerce and partly for residential or any other purpose shall be deemed to be immovable property for use in the course of furtherance of business or commerce; " 2. Learned Consultant has argued that for the demand period between April, 2008 to 30.6.2012, the above provision of the Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y way of - (i) Agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection of test. (ii) ..... (iii) ..... (iv) Renting or leasing of agro machinery or vacant land with or without a structure incidental to its use. 3. As per the provisions of negative list as provided under section 66D of the Finance Act, the operation relating to agriculture have been exempted from the levy of service tax as 'agriculture' has been included in the negative list of the activities provided under 66 D. The scope of agriculture has been further defined under section 65B(3) wherein "the agriculture means the cultivation of plant and rearing of all life-forms of animals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty has applied the exclusion explanation to the definition of 'renting of immovable property' in a very narrow way. We don't find any ambiguity in the provisions to say that water bodies rented out for aquaculture, are excluded from the scope of 'Renting of immovable property". 6. We are of the firm opinion that leasing of water bodies for fishing purposes is same as leasing of vacant land for aquaculture and therefore, same is fully covered under the exclusion clause of Section 65 of the Finance Act, 1994 and hence not leviable to Service tax. 7. Now, Coming to the period between 1.7.2012 to August, 2013, we find that same provisions have continued in slightly modified way wherein the activity of agriculture has been included in the nega ..... X X X X Extracts X X X X X X X X Extracts X X X X
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