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2025 (1) TMI 990

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..... for the purpose of hotel business. This Section 85(zzzz) was brought into the statute book on 08.05.2010 with retrospective effect from 01.06.2007. Therefore, the demand made under the category of renting of immovable property services, since covered in the exclusion Clause is not in conformity to the Finance Act as well as Article 265 of the Constitution of India. >Service that has been provided by the Appellant could have been termed as 'hotel accommodation service' as provided under Section 65(105)(zzzzw) that was brought into the statute book through amendment in the Finance Act, 1994 on 08.04.2011 which provides that service provided or to be provided to any person by a hotel, inn, guest-house, club or composite, by whatever name ca .....

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..... bai. For the period from April, 2011 to March, 2012, an amount of ₹6,87,098/- and for the period from April, 2012 to July, 2012 and amount of ₹2,76,464/-, two show-cause cum-demand notices dated 15.10.2012 & 25.03.2013 were issued to the Appellant M/s. Valvan Village resorts demanding Service Tax as noted above totalling ₹9,63,562/- along with interest and penalty for providing "renting of immovable property service" that was contested by the Appellant at the adjudication level and before the Commissioner (Appeals) unsuccessfully. Hence the appeal before this Tribunal. >3. We have heard submission from both the sides and perused the case record alongwith relevant provision of law. As could be noticed from definition of .....

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..... s or commerce and partly for residential or any other purposes shall be deemed to be immovable property for use in the course or furtherance of business or commerce; Renting of immovable property inter alia, covers the renting, letting, leasing, licensing of immovable properties or other similar arrangements. The current arrangement of lease under consideration is thus covered under renting of immovable property." >From the above referred provision, it would appear that building used solely for accommodation including hotels are excluded from the purview of "Renting of Immovable Property Service". Since allegation in the show-cause notice and findings in the Order-in-Original and Order-in-Appeal are based on the premises that Appellant .....

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