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2014 (9) TMI 968 - HC - Service TaxRecover of service tax from service receiver - Held that:- Admittedly, the properties in question do not fall within the two exemptions provided under Section 65(90a) of the Act. Explanation 2 under Section 65(90a) makes it more clear that renting of immovable property includes allowing or permitting the use of space in an immovable property, irrespective of the transfer of possession or control of the said immovable property. The duty performed by the first respondent Municipality would clearly fall within the ambit of the provisions referred above and therefore they have been remitting Service Tax to the Department. Further, Section 66D(a)(iv) of the Act deals with negative list of services and Clause (a) provides services by Government or a local authority excluding the following services to the extent they are not covered elsewhere and the relevant clause would be Clause (iv) namely support services, other than services covered under Clauses (i) to (iii), provided to business entities. Therefore, the Municipality is bound to pay Service Tax on the nature of transaction, which they have entered into with the petitioner. - Decision in the case of [2015 (3) TMI 391 - MADRAS HIGH COURT] followed - petitioner is not the service provider and he has not challenged the power of the second respondent to levy and demand Service Tax and the first respondent Municipality being the service provider is bound to pay the Service Tax, which has been remitted. In the light of the above findings, no grounds have been made out by the petitioner to interfere with the impugned proceedings. - Decided against Assessee.
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