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2019 (7) TMI 8 - CESTAT BANGALORERenting of immovable property service - constitutional levy of service tax - services provided by local body ( Municipality) created under the constitutional provisions - absence of profit motive - difference between the Licence fee and the income from commercial activity - HELD THAT:- The argument of the AR for Revenue, with regard to renting of immovable property is acceptable. We find that the constitutional validity of the same is upheld by Delhi High Court in the case of HOME SOLUTIONS RETAILS (INDIA) LTD. VERSUS UNION OF INDIA & ORS [2011 (9) TMI 46 - DELHI HIGH COURT] - Madras High Court has upheld the applicability of the same to Municipalities in the case of R. NAMBI VERSUS TENKASI MUNICIPALITY [2014 (9) TMI 968 - MADRAS HIGH COURT] - There is dispute regarding the quantification of duty and the nature of renting of immovable property and leasing out/sale of space for advertising as to whether are not for the purposes of furtherance of business interest or otherwise. Principles of natural justice - HELD THAT:- While the appellants contend that they have not been given enough opportunity to explain, the department contends that no proper bifurcation was given. The appellants submitted that vide letter, dated 24/7/12, they have requested that four weeks’ time to file their submissions. Oder was passed on 30/8/2012 before they submitted their records - It is not forthcoming from the OIO whether the appellants were put to sufficient notice before finalisation. This is certainly against the principles of natural justice. It is quite possible that contradictory and different figures are submitted at different times - Considering these circumstances and facts of the case, we find that the matter requires going back to the original authority for reconsideration of the issue afresh in the light of submissions of the appellants, in the interest of justice. Appeal allowed by way of remand.
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