9911796707
TMI Blog2023 (12) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... ctories, office buildings, warehouses, theatres, exhibition halls and multiple-use buildings so as to constitute for use in the course of furtherance of business. Thus the activity of renting of quarters for residential purpose would not be liable to service tax. It is a settled legal position that the renting of immovable property for residential purpose is not liable to service tax - In the instant case the appellant has only provided its quarters on rent for residential purpose to the employees of its contractors. The said quarters were also supposed to be provided on rent subject to availability. It is held that the demand of Rs.20,83,934/- along with interest confirmed in the impugned order under the category of 'Renting of Immo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2, passed by Commissioner of Service Tax, Kolkata. The following demands have been confirmed in the impugned order: Demand (Figures in Rs. ) Category Demand Remarks Supply of Tangible Goods 28,21,087 Entire tax and interest paid before issuance of SCN Business Support Services 16,547 Entire tax and interest paid before issuance of SCN Consulting Engineer Services 1,47,305 Entire tax and interest paid before issuance of SCN Renting of Immovable Property (other than received from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Appellant in the present appeal pertains to service tax demand on 'Renting of immovable property service'. The appellant rents out its quarters to the employees of the contractors for residential purposes. The Appellant collected some amount from the occupants of the residential quarters. The department demanded service tax on this amount collected by the Appellant from the employees of the contractors, which has been confirmed in the impugned order under Renting of immovable property service'. Aggrieved against the confirmation of demand under the category of 'Renting of Immovable property Service', the Appellant filed this appeal.. 4. In their grounds of appeal, the appellant submits that the quarters were us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, warehouses, theatres, exhibition halls and multiple-use buildings so as to constitute for use in the course of furtherance of business. Thus the activity of renting of quarters for residential purpose would not be liable to service tax. It is a settled legal position that the renting of immovable property for residential purpose is not liable to service tax. In the instant case the appellant has only provided its quarters on rent for residential purpose to the employees of its contractors. The said quarters were also supposed to be provided on rent subject to availability. 8. We observe that the OIO confirms the demand on the basis that the contractor mush have considered the eventual expenses towards rent which would ensure furtheran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usage of property in course or furtherance of business or commerce. We find such interpretation is not tenable. Such inference will virtually cover large number of pure residential accommodations under the tax net of renting of immovable property only on the ground that the person occupying the residential accommodation happens to be involved in business or commerce. We are of the opinion that the actual usage of the property for a particular purpose will decide the nature, either residential or used in furtherance of commerce or business . The nature of contracting parties or the occupation of the occupant has no relevance to decide the scope of the tax entry. 10. Following the above decision, we hold that the demand of Rs.20,83,9 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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