2009 (4) TMI 127 - AT - Service Tax

Renting of Hotel Rooms Held that - The only submission by the revenue now is that the cited decision in the case of Rajmahal Hotel supports the revenue s case. However, we find that the said decision only authorizes levy of Service Tax on renting of halls attached to the hotel but not in respect of renting of the hotel rooms. As such, we confirm the prima facie view taken by the Tribunal earlier and set aside the impugned order and allow the appeal.

Summary

The Appellate Tribunal CESTAT, New Delhi ruled in favor of the appellant, a hotel owner, stating that service tax is not leviable on the portion of revenue attributed to renting hotel rooms. The tribunal found that a previous decision supported the appellant's case, confirming that service tax is not applicable to renting hotel rooms. The impugned order was set aside, and the appeal was allowed.