TMI Blog2023 (12) TMI 678X X X X Extracts X X X X X X X X Extracts X X X X ..... service tax and not otherwise. As per the contractual norms, the rent amount has been fixed, which the appellant is entitled to receive from the lessee for letting out the property, which had not been disputed by the department in the present case. One time premium received by the appellant cannot be equated with rent inasmuch as the said amount is payable by the lessee for obtaining lease of the immovable property and for various infrastructural facilities provided in that property. In other words, since such premium amount is not in the context with the occupation of the immovable property leased, the same shall not be treated as a consideration , for letting out the property. The issue arising out of the present dispute is no more re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he books of accounts maintained by the appellant, the Service Tax Department alleged that sub-leased amount received by the appellant from various persons should be taxable under the category of renting of immovable property , defined as service under Section 65B(41) of the Finance Act, 1994. As against the claim of the Department for classification of the service under the category of renting of immovable property , the appellant had contended that the activity of construction of industrial units and sub-leasing the property should appropriately fall under the taxable entry of construction service on which they had already discharged the Service Tax labiality. However, the department did not agree to the views expressed by the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CS, Siliguri vide Final Order No. 77349/2023 dated 18.10.2023 to state that the issue arising out of the present dispute is no more open for any debate. 3. On the other hand, learned AR appearing for the Revenue reiterates the findings recorded in the impugned order and further submitted that since the premium amount was received by the appellant on periodical basis, the same should be considered as rent and since such rental amount is in context with immovable property, the provisions of taxable service under the category of renting of immovable property is squarely applicable for payment of Service Tax on the amount of premium received by the appellant. 4. Heard both sides and perused the records. 5. The appellant in this case, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e property has been considered as a declared service. Thus, any amount received towards rent for letting out the property will only be liable for payment of service tax and not otherwise. As per the contractual norms, the rent amount has been fixed, which the appellant is entitled to receive from the lessee for letting out the property, which had not been disputed by the department in the present case. One time premium received by the appellant cannot be equated with rent inasmuch as the said amount is payable by the lessee for obtaining lease of the immovable property and for various infrastructural facilities provided in that property. In other words, since such premium amount is not in the context with the occupation of the immovable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e nature of the rent irrespective of whether this rent is collected periodically or in advance in lump sum. Service Tax under Section 65(105)(zzzz) read with Section 65(90a) cannot be charged on the premium or salami paid by the lessee to the lessor for transfer of interest in the property from the lessor to the lessee as this amount is not for continued enjoyment of the property leased. Since the levy of Service Tax is on renting of immovable property, not on transfer of interest in property from lessor to lessee, Service Tax would be chargeable only on the rent whether it is charged periodically or at a time in advance. In these appeals, in the show cause notice dated 19-3-2012 issued by the Addl. Director, DGCEI, New Delhi, Service T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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