Quick Summary
The Chennai Bench of the Customs, Excise Service Tax Appellate Tribunal (CESTAT) has set aside a service tax demand raised against actor Rajinikanth in a dispute related to the renting of immovable property. The case involved property owned by the actor in Chennai that had been leased for hotel operations through an agreement with a hospitality company. The tax department had earlier demanded service tax under the category "Renting of Immovable Property Service." However, the tribunal held th
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FAQ :
The dispute concerned a service tax demand raised by the tax department for the renting of Rajinikanth's immovable property in Chennai, which was leased for hotel operations.
The Chennai Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) made the ruling.
The tribunal quashed the demand because buildings used for hotel operations are specifically excluded from service tax under the law applicable at that time.
Yes, the tribunal relied on an earlier decision that had been affirmed by the Supreme Court, which clarified that renting buildings for hotel use is not subject to service tax.
The CESTAT set aside the tax authorities' orders, allowed Rajinikanth's appeals, and stated he is eligible for consequential relief.
The order was pronounced on 4 March 2026.
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