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TMI Blog2017 (4) TMI 952X X X X Extracts X X X X X X X X Extracts X X X X ..... e occupation of the occupant has no relevance to decide the scope of the tax entry - Explanation-I to the tax entry explains the scope of the term, for use in course or furtherance of business or commerce’. It includes use of space in an immovable property as factories, office, buildings, warehouses, theatres, exhibition halls and multiple use buildings. Admittedly, in the present case, the property has not been used for any one of these purposes - demand withheld - appeal allowed - decided in favor of appellant. - Service Tax Appeals Nos. 58021-58022/2013-DB - Final order No. 52866-52867/2017 - Dated:- 7-4-2017 - Hon ble Shri S.K. Mohanty, Member (Judicial) And Hon ble Shri B. Ravichandran, Member (Technical) Shri Ravin Dubey, Ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or commerce purposes. He drew our attention to the Explanation II under Section 65(90a) and also Exclusion under Clause (d) of Section 65(105)(zzzz) of the Finance Act, 1994. He submitted that a plain reading of the statutory definition of tax entry will make it clear that the property should be put to use of business or commerce and in the absence of such usage, the residential building cannot be put to the service tax liability. 4. Ld. AR reiterated the finding in the impugned orders. It is submitted, that the letting of the residential building to the contractors certainly helped the business of the appellants as well as the contractors by providing convenient and nearby accommodation to the employees of the contractors. This has hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pace in an immovable property, irrespective of the transfer of possession or control of the said immovable property; Section 65(105)(zzzz) of the Finance Act, 1994 (as amended by Finance Act, 2010) defines the -Taxable Service as (105)(zzzz) -taxable service means any service provided or to be provided, to any person by any other persons by renting of immovable property or any other service in relation to such renting for use in the course of or for furtherance of business or commerce. Explanation 1 For the purposes of this sub-clause, immovable property includes- (i) building or part of a building, and the land appurtenant thereto; (ii) land incidental to the use of such building or part of a building; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ants as well as the contractors. In this connection, we refer to the statutory definition as reproduced above. Explanation-I to the tax entry explains the scope of the term, -for use in course or furtherance of business or commerce . It includes use of space in an immovable property as factories, office, buildings, warehouses, theatres, exhibition halls and multiple use buildings. Admittedly, in the present case, the property has not been used for any one of these purposes. It is to be considered whether the employees of the contractors using the property for residential accommodation and attending to the contract work can be considered as usage of property in course or furtherance of business or commerce. We find such interpretation is not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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