𝗖𝗘𝗦𝗧𝗔𝗧 𝗖𝗵𝗲𝗻𝗻𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗘𝘅𝗲𝗺𝗽𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗣𝗮𝗿𝗸𝗶𝗻𝗴 𝗔𝗿𝗲𝗮𝘀 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗿𝘂𝗹𝗲𝗱: "Land or buildings used specifically for parking are exempt from Service Tax as they qualify as immovable property."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s. Brookefields Estates Private Limited 𝗜𝘀𝘀𝘂𝗲: The appellant filed a refund claim for Service Tax paid on parking charges, asserting that parking areas fall outside the definition of taxable “Renting of Immovable Property Services” (RIPS). A Show Cause Notice challenged this, arguing that the parking space was not exempt as immovable property for RIPS purposes.

⚖️ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Tribunal ruled that parking areas, even if built structures, qualify as exempt immovable property under Section 65(105) (zzzz) of the Finance Act. Consequently, parking spaces are not taxable under Renting of Immovable Property Services (RIPS), and the rejection of the appellant’s refund claim was deemed unjustified.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s. Brookefields Estates Private Limited vs. Commissioner of Central Excise and Service Tax 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 40814 of 2014 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 10 August 2023 This decision confirms that land or structures specifically designated for parking are not subject to Service Tax under RIPS, allowing entities providing such spaces to seek refunds on previously paid taxes.