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2019 (11) TMI 440 - AT - Service TaxRenting of Immovable Property Services to commercial concerns - non-payment of service tax - period from June 2007 to August 2012 - demand of interest - interest for part period paid - imposition of penalty - HELD THAT:- The service tax was levied on the activity of renting of immovable property service by giving retrospective effect to Section 65(105)(zzzz) of the Finance Act from 01/06/2007 itself. The said Finance Act received ascent of the Hon’ble President of India on 28/05/2012 and as per Section 80(2) of the Finance Act, payment of tax and interest was to be made within 6 months i.e. on or before 27/11/2012. Further, the service tax amount of ₹ 47,37,557/- for the period June 2007 to August, 2007 has been discharged by the appellant on 25/10/2012 prior to the stipulated date. Further, as per the show-cause notice, the demand for service tax was for an amount of ₹ 43,68,851/- and the appellant has paid ₹ 47,37,557/- i.e. ₹ 3,68,706/- is paid in excess and subsequently for the period July 2010 to August 2012, appellant has also paid interest of ₹ 2,86,844/-. Demand of Interest - HELD THAT:- The appellants are liable to pay interest from June 2007 to June 20102. The appellant has already paid the interest from July 2010 to August, 2012 amounting to ₹ 2,84,844/- and now they are only liable to pay interest from June 2007 to June 2010. Since the appellant has already paid excess amount of service tax in the month of October 2012 itself amounting to ₹ 3,68,706/-, which can be appropriated towards the liability of interest - Since the amount of interest has not been calculated, the matter is remanded to the original authority for quantification of interest for the period June 2007 to June 2010 and the same may be appropriated from the excess amount paid by the appellant. Imposition of penalty - HELD THAT:- The assessee has paid the duty within the stipulated period as prescribed in the amendment, which was given retrospective effect. Prior to the amendment there was dispute regarding the taxability of renting of immovable property service and the issue has not yet been settled - the imposition of penalty is totally unwarranted and the same is set aside. The matter is remanded to the original authority for quantification of interest - Appeal allowed by way of remand.
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