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2014 (8) TMI 103 - AT - Service TaxRenting of immovable property - lease agreement - levy of service tax on amounts collected by way of premium and rental - job of development of Navi Mumbai under the Maharashtra Regional Town Planning Authority under the said Act for developing certain town - Held that:- The expressions other similar arrangements used in Section 65(90a) and any other service in relation to such renting used in Section 65 (105) (zzzz) are expressions of width and amplitude. It would include not only the actual leasing or renting but also any other activity in relation to such leasing/renting. Therefore, the agreement to lease which is entered into prior to the actual leasing and which is in relation to the lease undertaken subsequently subject to construction of building, etc. would also come within the purview of service tax levy with effect from 01/07/2010, if not before. The distinction sought to be made by the appellant in respect of "agreement to lease" and the "lease agreement" would not matter and the levy would apply, in both the situations. Performance of sovereign function - Held that:- As regards the argument that the appellant was an agent of Government of Maharashtra and was performing a statutory function and therefore, the levy of service tax would not apply, this argument is completely misplaced. - The law does not distinguish between the Government and non-Governmental agencies. It merely says that the activities of rendering of services (as defined in law) would be leviable to tax. Regarding vacant land - Held that:- Prior to 01/07/2010, there was no provision for levy of service tax on vacant land given on lease. Considering the fact that the appellant does not have a prima facie case, especially for the period post 01/07/2010 and also taking into account the financial hardship pleaded, we direct the appellant to make a pre-deposit of ₹ 20 Crore (Rupees Twenty Crore only), which is approximately the demand for the normal period of limitation - stay granted partly.
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