One-Time Premium/Salami for Property Interest Transfer Not Subject to Service Tax

Luxmi Township Limited Vs Commissioner of CGST & CX (CESTAT Kolkata) CESTAT Kolkata held that one time payment, in the form of Premium or Salami for transfer of interest in the property cannot be equated as rent and hence the same is not exigible to the service tax. Accordingly, demand of service tax set aside. Facts- The Appellant are engaged, inter alia, in the business of setting up of modern Townships which include infrastructure and support facilities. The Appellant obtained permission from Government of West Bengal to occupy land for the purpose of setting up of a satellite Township....