999-year lease not renting of immovable property but permanent transfer: CESTAT holds no service tax on one-time premium

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) ruled that a 999-year lease of immovable property constitutes a permanent transfer and is therefore not “renting of immovable property” liable to service tax on one-time premium. Since the transaction was upfront, non-recurring and tantamount to transfer of a capital asset, the levy under “renting” was held inapplicable. This landmark clarification helps property owners and lessees distinguish between long-term lease arrangements and permanent transfers for indirect tax purposes, improving clarity on service tax-treatment of such contracts.