2022 (2) TMI 60
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....ant had rented their land (DTA - DTZ) for 99 years lease to three customers namely M/s. VRV Cryogenic Equipment Pvt. Ltd., M/s. Fresh & Honest Café Ltd. And M/s. Kobelco Construction Equipment India Pvt. Ltd. They collected lease / rent amounting to Rs. 6,61,00,000/- (for 99 years) during the period from 5.8.2008 to 20.1.2010. As per the lease deed, the lessees proposed to construct commercial complexes on the leased land. The appellant did not discharge their service tax liability in respect of the amounts received as rent for leasing the vacant land. 2. The activity of leasing of vacant land had become taxable with effect from 1.7.2010 after the amendment to section 65(105)(zzzz) by inserting clause (v) to the definition of immova....
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....10. When the activity itself is not taxable, the amounts received by the appellant prior to 1.7.2010 cannot be subject to leavy of service tax. He submitted that the issue stands covered by the decision of the Hon'ble High Court of Allahabad in the case of Commissioner of Service Tax Vs. Greater Noida Industrial Development Authority reported in 2015 (40) STR 46 (All.). 5. The learned AR Shri R. Rajaraman supported the findings in the impugned order. 6. Heard both sides and perused the records. 7. The issue is whether the appellant is liable to pay service tax on the amount received by them prior to 1.7.2010 for leasing the vacant land. The department has relied on Notification No. 36/2010-ST to allege that the amount received by the....
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....ith effect from 1-7-2010 and consequently vacant land given on lease or licence, for construction of a building or a temporary structure, to be used at a later stage for furtherance of business or commerce, would be 'immovable property' and renting of this immovable property would be the taxable service, since 1-7-2010. 13. In view of clear exclusion of vacant land from the ambit of immovable property prior to 1-7-2010 it cannot gainfully be contended by Revenue, that clause (v) to Explanation I (introduced in 2010), was a mere clarificatory endeavour, explicating the implicit and inherent meaning of Section 65 (105)(zzzz). Clause (v) is clearly an amendment which expands the scope of the taxable service; and prospectively. 14. Clause 7....
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....tructions and the scope of sub-clause (v) of Explanation I in Section 65(105)(zzzz) fortify the conclusion the scope of sub-clause (v). To modify and expand the scope of the taxable service to cover and include vacant land on lease or licence for construction of a building or a temporary construction at a later stage to be used for furtherance of business or commerce, within the ambit of 'immovable property' is thus the taxable service. Since the introduction of this sub-clause in Explanation I expands the scope of the taxable service and renders the taxable (a) hitherto non-taxable transaction, and absent of explicit retrospective reach provided to the amendment and insertion of this sub-clause, these transactions covered by this sub-claus....