Shreno Ltd Vs C.C.E. & S.T. (CESTAT Ahmedabad)
Preferential Location Charges were correctly subjected to Service Tax at same rate as that of Construction of Residential Complex Service by the Appellant and the differential demand of Service Tax alongwith interest and penalty therefore must be quashed and set aside. The Appellant also becomes entitled to consequential relief in form of refund as claimed for by them on this count, in terms of Section 11B of the Central Excise Act, 1944.
No Service Tax on Renting of immovable property which was used only as residential dwelling of the Director
As regards the demand of Service Tax on Renting of immovable property service, the SCN itself suggests that the demand is raised since the service availed is essentially a business entity and the property is to be used for accommodation of Directors/Senior Management personnel. This in itself, in our view, is not sufficient to hold that the nature of service was that of Renting of immovable property for commercial use. The Appellant has adduced evidence in form of Electricity bills and Certificate from Co-Op Housing Society, which shows that only one Director was permanently residing at the leased accommodation premises and the property had not commercial use. There is no dispute as such that the leased premises was used only as residential dwelling of the Director.
FULL TEXT OF THE CESTAT JUDGEMENT
These appeals have been filed by M/s. Alembic Ltd. and M/s. Shreno Ltd. The details of the period, issue and amount involved in these appeals are as follows :
A) Preferred Location Service:
