Rakesh Kumar, Technical Member - The facts leading to filing of these two appeals are, in brief, as under:—

1.1 The appellant 'M/s. Greater Noida Industrial Development Authority is a body corporate established under U. P. Industrial Development Act, 1976 to develop the defined area as a planned industrial township. The appellant discharges the statutory duties and functions which, include allotment of land on lease basis. The appellant also provides municipal services in the Greater Noida, which has been notified as an industrial township by the Government of U.P. In terms of Section 6 of the U.P. Industrial Area Development Act, 1976, the function of the Appellant is to secure the planned development of the industrial development area and for this purpose, prepare plans for development, demarcate and develop sites for industrial, commercial and residential purposes according to the plan, providing infrastructure for industrial, commercial and residential purposes, providing amenities regulating erection of buildings and setting up of industries, allocation and transfer by way of sale or lease or otherwise, of the plots of land for industrial, commercial or residential purposes, etc. In terms of Section 7 of the above Act, the Appellant may sell, lease or otherwise transfer, whether by auction, allotment or otherwise, any land or building belonging to the Authority in the industrial development area on such terms and conditions as it may think fit to impose. Under section 11 of the Act, the Appellant is authorized to levy tax for the purpose of maintaining or continuing any amenities in the industrial development area which includes roads, water supply, sewerage, drainage, etc. Accordingly, the Appellant has allotted plots of land to various persons by way of sale or lease for industrial, commercial or residential purposes. The appellant is registered for payment of Service Tax on renting of immovable property services and sale of space for advertising and the appellant since 01.06.07, is paying service tax on rent received from the constructed immovable properties rented out by it for business or commerce. However, during the period of dispute, it was not paying any service tax on the rents received for allotment of plots of vacant land to various persons on lease basis for industrial or commercial purposes.

1.2 Under Section 65(105)(zzzz) introduced with effect from 1.6.2007, service provided to any person by any other person, by renting of immovable property or any other service in relation to such renting, for use in the course of, or for furtherance of business or commerce became taxable. Explanation-I to Section 65(105)(zzzz) defines the sub-clause 'immovable property' and it excludes.'

(a) Vacant land solely used for agriculture, aquaculture, farming, forestry, animal husbandry, mining purposes;

(b) Vacant land whether or not having facilities clearly incidental to the use of such vacant land;

(c) Land used for educational, sports, circus, entertainment and parking purposes; and

(d) Land used solely for residential purposes and buildings used for the purposes of accommodation, including hotels, hostels, boarding houses, holiday accommodation, tents, camping facilities.

The definition of the term 'immovable property' mentioned four types of immovable properties as covered by this term. However, with effect from 1.7.2010, a clause (V) was added to the definition of 'immovable property', which covers 'vacant land given on lease or licence for construction of building or temporary construction at a later stage to be used for furtherance of business or commerce'. At the time of amendment, the Tax Research Unit of Central Board of Excise & Customs (Department of Revenue) vide Circular dated 26.02.2010 clarified that suitable amendment in the definition of taxable service relating to renting of immovable property is being made so as to provide that tax would be charged on rent of a vacant land if there is an agreement or co