TMI Blog2020 (8) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... reason for the delay in filing the appeal. Be that as it may, in the interest of justice, and considering the fact that the delay is within the condonable powers of this Authority, we are inclined to suo moto condone the delay in filing this appeal and proceed with a decision on the merits of this case. Renting services - Held that:- KIADB is a statutory body constituted for the development of industries in the industrial areas of Karnataka. Lands are allotted by the KIADB to entrepreneurs only after the proposals for the proposed utilization of the land for industrial projects is approved by the competent authority. Therefore, it can be justifiably inferred that the land was allotted to the owner for industrial purposes and not for residential purposes. Therefore, the building on this land allotted by KIADB cannot be construed as residential building and consequently the building rented out by the owner to the Appellant was not a residential building. Therefore, the transaction between the owner Shri. Banraji B.H and the Appellants is not one of renting of residential dwelling for use as residence. This transaction is in the nature of renting of non-residential building and hen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing own or leased residential property. The Appellant has entered into an agreement with Dr Banraji B.H on 21-03-2018 for getting the building having two floors totally measuring 1023.00 Square meters at Plot Number 66-E, Phase II, Sector-II, KIADB, Shanamangala Village limit, Bidadi Industrial area, Bidadi, Ramanagara Taluk on a monthly rent of 2,35,000/- per month for a period of 3 years to be exclusively used for accommodation purpose. 4. Further the Appellant company has entered into an agreement with Sodexo Food Solutions India Private Limited dated 02-04-2018 for sub-letting 31 rooms at 1 St and 2nd floor of the building at Plot Number 66-E, Phase II, Sector-II, KIADB, Shanamangala Village limit, Bidadi Industrial area, Bidadi, Ramanagara Taluk on a monthly rent of 5,25,000/-per month for residential accommodation of the staff and executives of Sodexo Food Solutions India Private Limited and also providing the following facilities as per the requirement of Sodexo Food Solutions: (i) Washrooms and toilets are common infrastructure required in the building, (ii) bunkers with lockers, partitions, (iii) water purifier with RO, (iv) Dining tables and chairs, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 28.06.2017 and is hence liable to tax at respective rates. 7. Aggrieved by the said ruling, the appellant has filed this appeal on the following grounds. 7.1 The Appellant contends that GST is applicable only to premises used for accommodation services by Inns, guest house, lodging houses and exemption is provided in the case of renting of residential dwelling for use as residence, hence as per Notification No. 12/2017- Central Tax (Rate) dated 28th June 2017 as Services by way of renting of residential dwelling for use as residence is exempt from GST. They submitted that the term dwelling is not defined in the GST law or notification. However, based on definitions under various dictionaries, the term dwelling means a house, flat or other place of residence. 7.2. They submitted that typically accommodation in a guest house is for a shorter period and the landlord charges a tariff for each guest house and such charges are on a per day basis. Further, the landlord of the guest house also facilitates cooking and serving of food and housekeeping services similar to an Inn or a hotel accommodation. On the other hand, in the case of renting of residential dwelling, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epresented by Shri. Koushal, Chartered Accountant who reiterated the submissions made in the grounds of appeal. DISCUSSIONS AND FINDINGS 9. We have gone through the records of the case and considered the submissions made by the Appellant in their grounds of appeal as well as at the time of personal hearing. The issue before us relates to two transactions viz. (i) renting of a two-floor building by the owner Dr Banraji B.H to the Appellant; and (ii) sub-letting of the same premises on rent by the Appellant to M/s Sodexo Food Solutions India Pvt Ltd. In both the above transactions we have been called upon to decide whether the same is an activity of renting of residential dwelling for use as residence which is exempted from GST by virtue of entry No 12 of Notification No 12/2017 CT (R) dated 28-06-2017. 10. Before we proceed further, we find that there has been a delay in filing the present appeal. The order of the Authority of Advance Ruling dated 25.09.2019 was admittedly received by the appellant on 26th September 2019. The appeal was filed before this Appellate Authority on 25th November 2019 after a period of 60 days from the date of receipt of the order of the lowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formation in the agreement appears to indicate that the building which was rented out by the owner was not suitable for use as dwelling for residence. Further, it is also seen that the property at Plot No 66-E was allotted to the owner Shri. Banraji B.H by the Karnataka Industrial Development Board (KIADB) in August 2014. KIADB is a statutory body constituted for the development of industries in the industrial areas of Karnataka. Lands are allotted by the KIADB to entrepreneurs only after the proposals for the proposed utilization of the land for industrial projects is approved by the competent authority. Therefore, it can be justifiably inferred that the land was allotted to the owner for industrial purposes and not for residential purposes. Therefore, the building on this land allotted by KIADB cannot be construed as residential building and consequently the building rented out by the owner to the Appellant was not a residential building. Therefore, we hold that the transaction between the owner Shri. Banraji B.H and the Appellants is not one of renting of residential dwelling for use as residence. This transaction is in the nature of renting of non-residential building and hence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 hours, Maintenance work, (vi) television set with DTH connection, (vii) Water sump, (viii) OHT (2000 Liters*3) We agree with the lower Authority s finding that this amounts to supply of goods as per entry no.1(c) of Schedule II to the Central Goods and Services Tax Act which reads any transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future date upon payment of the full consideration as agreed, is a supply of goods . Accordingly, it is liable to tax at the rate applicable to each of the goods at the time the delivery of the goods is given to Sodexo Food Solutions India Pvt. Ltd. So also, the security services provided by the Appellant is liable to tax as applicable under SAC 998529 at 18% (CGST @ 9% + KGST @ 9%) under entry 23(ii) of Notification No.11/2017- Central Tax (Rate) dated 28.06.2017. 16. In view of the above discussion, we pass the following order ORDER We uphold the Advance Ruling No KAR/ADRG 86/2019 dated 25-09-2019 = 2019 (10) TMI 1092 - AUTHORITY FOR ADVANCE RULING, KARNATAKA and dismiss the appeal filed by M/s. SRI DMS HOSPITALITY PRIVATE LIMITED on all counts. - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
