Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2014 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (9) TMI 697 - AT - Service TaxWaiver of pre-deposit - Renting of Immovable Property - services rendered by M/s Maharashtra Industrial Development Corporation (MIDC) - whether function of state or not - Held that:- Section 20 of the Act inter alia provides for maintenance fund for the Corporation and all monies received by the corporation from the Government, all fees, costs and charges received, all monies received by way of disposal of land, buildings and other properties, movable or immovable and all monies received by way of rents and profits or in any other manner or from any other sources are credited to the fund. From these provisions of the MIDC Act, it is clear that the Corporation has its own identity apart from that of Maharashtra Government and operates independently of the Government. The receipts of the corporation are credited to its own fund and do not go the consolidated fund of the State. If that be so, the activities undertaken by it can not be construed as functions of the State. In the present case we have noticed that the appellant is undertaking lease of land in two stages. In the first stage an agreement to lease the land to eligible applicants on payment of premium is entered into subject to construction of commercial buildings on the land and once the construction is completed, a lease agreement is entered into on payment of lease rental. The activity undertaken by the appellant would be amenable to service tax with effect from 1.7.2010, if not earlier. As the demand involved is huge to the extent of ₹ 536 crores, no undue hardship would be caused to the appellant if some pre-deposit is ordered, especially since no prima facie case has been made out by the appellant. - stay granted partly.
|