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TMI Blog2014 (7) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... f immovable property by a religious body or to a religions body; renting of immovable property to an educational body, imparting skill or knowledge or lessons on any subject or field, other than a commercial training or coaching centre, are excluded. The Explanation under clause (90a) further defines the expression for use in the course or business or commerce and also incorporate a clarificatory clause for removal of doubts, not necessary for the purposes of these appeals. Similarly, in clause (zzzz) there are inclusionary or exclusionary clauses embedded. Renting of immovable proper for a hotel is expressly excluded from the ambit of the taxable service in Section 65(105) (zzzz) - Following decision of Ambience Construction India Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided the taxable renting of immovable property service, defined in Section 65(90a) read with Section 65(105)(zzzz) of the Act. 3. Appellant in response to the show cause notices issued, contested the liability to tax on two principal grounds: (a) That it had entered into an agreement dated 28.08.1985 with M/s Indian Hotels Company Limited whereunder the parties entered into a joint venture to run the hotel and therefore to share profits and losses alike, hence there was question of rendition of service by one person/ entity to another; there existed no relationship of service provider and service recipient; and that sharing of profits and losses between joint ventures would not amount to receipt of consideration for renditio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clause adverted to above, the interpretation is compelling that buildings used for or as hotels do not amount to immovable property. The legislative provision in question i.e. the exclusionary clause (d), to the extent relevant and material, excludes from the purview of immovable property, buildings used for the purposes of accommodation including for hotels. 8. The view that has found favour with the Authorities below for rejecting the appellant's claim that leases for accommodating hotels is outside the purview of the taxable service, is set out in paragraph 6.5 of the order of the learned Appellate Commissioner dated 21.10.2011 (the subject matter of Service Tax Appeal No. 16 of 2012). The reasoning runs thus: The legislative i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inclusionary or exclusionary clauses embedded. 10. On a true and fair construction of provisions of the exclusionary clause under Explanation 1 to Section 65 (105) (zzzz); and in particular sub-clause (d) thereof, we are compelled to the conclusion that renting of buildings used for the purpose of accommodation including hotels, meaning thereby renting of a building for a hotel, is covered by the exclusionary clause and does not amount to an immovable property , falling within the ambit of the taxable service in issue. 11. This Tribunal in Ambience Construction India Ltd. vs. Commr. of S.T. Hyderabad - 2013 (31) STR 343 (Tri. Bang.), having considered the identical provision categorically ruled that renting of immovable proper for a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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