MYSORE HOTEL COMPLEX Vs. UNION OF INDIA

JUDGEMENT

(1.) Learned counsel Sri. Jeevan J. Neeralagi accepts notice for the respondents.

(2.) The petitioner is a Partnership Firm which has undertaken the activity of renting of buildings for commercial purpose. The petitioner is registered with the service tax department under the category of "Renting of Immovable Property Service". The petitioner firm has leased out their premises to M/s. Royal Hotel, Thrissur for a term of eight years with a monthly rent of Rs.45,000.00 upto 48 months and thereafter at Rs.48,750.00 up to 96th months. The lessee as per the agreement has deposited security deposit of Rs.3 crores and the same was received by the petitioner on different dates during the years 2010 and 2011, the last date being 28.03.2011. However, the agreement between the lessee and the petitioner has been executed on 09.06.2011.

(3.) The petitioner was served with a show-cause notice, wherein it is averred that during the investigation conducted by the service tax department, it was found that the petitioner is carrying on the activities of renting/leasing of buildings and is liable to pay service tax as the said activity is coming under the taxable service of "Renting of immovable property" upto 30.06.2012 and under "taxable service" from 01.07.2012 onwards. The Adjudicating Authority passed the order on 30.11.2017/11.12.2017 and it was served on the petitioner on 21.01.2018 against which the petitioner had preferred an appeal before the Appellate Authority on 25.05.2018.