Rent to Foreign Government Office Taxable without MEA Certificate: CESTAT Confirms Service Tax Demand

The CESTAT confirmed a service tax demand on rent received from a foreign government office in India, ruling that exemption applies only when the Ministry of External Affairs (MEA) issues a specific certificate confirming diplomatic immunity. In the absence of such certification, the rent constitutes a taxable service under the Finance Act. The tribunal held that procedural non-compliance cannot nullify statutory tax liability. The decision underlines the importance of proper certification for diplomatic premises to claim exemptions under service tax law.