2018 (5) TMI 919 - AT - Service Tax

Renting of immovable property service - property given on lease - Held that - the matter is sub-justice before the Hon‟ble Supreme Court in the case of Greater Noida Industrial Development Authority vs. Commissioner 2015 (9) TMI 1614 - SUPREME COURT . Interim stay has been granted by Hon ble Supreme Court in Greater Noida Industrial Development Authority vs. Commissioner 2015 (4) TMI 1231 - ALLAHABAD HIGH COURT - liberty is granted to the appellant to come again after having the final verdict from the Hon ble Supreme Court, but within the prescribed period - appeal disposed off.

Summary

Issues:
Service tax on "Renting of immovable property service" - Whether lease amount constitutes a sale or falls under the category of renting of immovable property service.

Analysis:
In the present appeal, the issue revolves around the demand for service tax on the "Renting of immovable property service." The appellants argue that the lease they took from the Municipal Corporation allowed them to construct a commercial building and use the property for 30 years, after which it would revert to the Municipal Corporation. They contend that since they transferred their rights for 30 years to the lessee, it should be considered a sale rather than falling under the category of "Renting of Immovable Property" service. The appellants claim to have paid service tax on the monthly rental income after availing exemptions. The appeal challenges the classification of the lease amount under the service tax regime.

The learned Counsel for the appellants points out a similar issue pending before the Hon'ble Supreme Court in the case of Greater Noida Industrial Development Authority vs. Commissioner. An interim stay has been granted by the Supreme Court on the order of the Allahabad High Court in the mentioned case. Due to the ongoing proceedings at the Supreme Court, it is argued that the present appeal cannot be decided without the final verdict from the Supreme Court. Both parties agree to await the final decision before proceeding with the appeal.

Considering the circumstances and the pending matter before the Supreme Court, the Tribunal grants liberty to the appellants to return after obtaining the final verdict from the Supreme Court within the prescribed period, if necessary. The appeal is disposed of with this liberty, allowing the appellants to revisit the issue based on the outcome of the Supreme Court's judgment. The decision to wait for the final verdict reflects the Tribunal's acknowledgment of the impact of the pending case on the issue at hand and ensures a fair and informed resolution based on the Supreme Court's decision.