Case Law Details
Hotel Shreelekha Regency Limited Vs Commissioner of GST & Central Excise (CESTAT Chennai)
The CESTAT, Chennai in M/S. Hotel Shreelekha Regency Limited [Service Tax Appeal No. 40073 of 2014 dated July 14, 2023] set aside the order demanding service tax on rental property and held that, income received from rent by assessee is not subject to levy of service tax.
Facts:
M/s. Hotel Shreelekha Regency Ltd (“the Appellant”) is engaged in hotel business. The Appellant was running a three-star hotel in the name of Hotel Shreelekha Regency since May 10, 2000.
The Appellant entered into an agreement with M/s. Palmgrove Beach Hotels Pvt. Ltd. (Palmgrove) dated February 19, 2005 granting Palmgrove a solely and exclusive right to recommence the hotel to run, conduct, manage, operate, market the same in the name and style as Palmgrove. The right was vested with the possession of the hotel for an initial period of 50 years and renewable for another 50 years.
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