Case Details: JSW Steel Ltd. Versus Commissioner of Service Tax -VII, Mumbai (2025) 33 Centax 348 (Tri.-Bom)
Judiciary and Counsel Details
- S/Shri C.J. Mathew, Member (T) & Ajay Sharma, Member (J)
- Shri Sachin Chitnis, Adv. for the Appellant
- Shri Adeeb Pathan, Deputy Commissioner (AR) for the Respondent
Facts of the Case
The assessee leased 140.10 hectares of land to its relative company during 2007-08 specifically for construction of a port and marine-related activities. The department alleged that such lease amounted to ‘renting of immovable property’ service under Section 65(105)(zzzz) of the Finance Act, 1994 and demanded service tax along with interest and penalties. The original authority dropped the demand, holding that vacant land used for construction of a port was excluded from the definition prior to 1-7-2010. On appeal, the Commissioner (Appeals) reversed the order, holding that the lease of land for the construction of a port was for the furtherance of business or commerce and hence taxable, leading to the present appeal before CESTAT.
Tribunal Held
The Tribunal held that the lease of land for the construction of a port and carrying out marine-related activities is for use in the course or furtherance of business or commerce and falls within the scope of ‘renting of immovable property’ service. It ruled that such leases are subject to service tax under Section 65(105)(zzzz) of the Finance Act, 1994, thereby upholding the tax liability confirmed by the Commissioner (Appeals).
List of Cases Cited
- Cinemax India Limited v. Union of India — 2011 (24) S.T.R. 3 (Guj) —Referred [Para 3]
- Commissioner v. Mormugao Port Trust — 2016 (41) S.T.R. 127(Tri. – Bom.)— Referred [Para 4]
- Greater Noida Industrial Development Authority v. Commissioner — 2015 (40) S.T.R. 95 (All.) — Referred [Paras 4, 6, 7]
- Greater Noida Industrial Development Authority v. Commissioner — 2015 (38) S.T.R. 1062 (Tri. – Del.) — Followed [Paras4, 6]
- Jawaharlal Nehru Port Trust v. Commissioner — 2017 (3) G.S.T.L. 317(Tri. – Mumbai)] — Referred [Para4]\
- Rolex Rings Pvt Ltd. v. Commissioner — 2019 (25) G.S.T.L. 398 (Tri. -Ahmd) — Referred [Para 4]
