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2023 (7) TMI 206 - CESTAT CHENNAIWaiver of interest and penalty - Leviability of Service Tax on Renting of Immovable Property Services - constitutional validity of amendment giving retrospective effect from 01/06/2007 - HELD THAT:- This is a case where a retrospective amendment was made to the definition of ‘Renting of Immovable Property Service’ in order to clarify the legislative intent and also bring in certainty in tax liability. The amendment clarified that the activity of renting of immovable property per se would also constitute a taxable service under the relevant clause. It was given retrospective effect from 01.06.2007. It is found that no provision of time has been made in the present amendment for payment of retrospectively assessed duty. Hence, the interest would be in the nature of a quasi-punishment and is not payable by the appellant. This is based on the well settled principle of constitutional law that sovereign legislative bodies can make laws with retrospective operation however no ex post facto penalty is permissible. In the light of the same no penalty is also payable by the appellant. Hence the appellant is liable for waiver of interest and penalty. The Hon’ble Tribunal’s judgment in M/S COAL MINES PROVIDENT FUND ORGANISATION VERSUS COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX, RANCHI [2020 (2) TMI 1493 - CESTAT KOLKATA] cited by Revenue is not on an issue related to demands based on retrospective amendment to a legislation and is distinguished, moreover it will have to give way to a judgement of the Apex Court on the matter. The interest and penalties confirmed in the impugned order set aside - appeal disposed off.
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