CESTAT: License Fee in Brewery Contract Not Taxable as Part of Immovable Property Rent

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that a license fee paid under a brewery contract is not taxable as part of the rent for immovable property. The case involved a contract where one party was allowed to use a brewery for manufacturing, and the agreement included both a rental component for the property and a separate license fee for the right to manufacture. The service tax department had attempted to club the license fee with the rent, seeking to tax the entire amount under the "Renting of Imovable Property" service category. However, the tribunal differentiated between the two, holding that the license fee was a consideration for the right to carry out a specific business activity, not for the use of the property itself. Therefore, it could not be taxed as rent, providing an important clarification on the tax treatment of composite business agreements.