License fee based on turnover and profit not equated as regular rent is not taxable under ‘renting of immovable property’

Peninsula Hotels (P) Ltd Vs Commissioner Of GST & Central Excise (CESTAT Chennai) CESTAT Chennai held that license fee are accruing to appellants is based on the turnover and profits of the hotel business. Accordingly, such transaction cannot be one of ‘renting of immovable property’ as the consideration is not like a regular rent but is dependent on the annual performance and profits of the hotel. Facts- The appellant had entered into an agreement with M/s. GRT Regency (herein after referred to as “GRT”) by which GRT obtained lease of the Hotel and the premises. GRT then obtained ...