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2016 (4) TMI 937 - AT - Service TaxService tax liability for 01.06.2007 to 31.03.2010 - levied on value of rent received for the premises - Renting of Immovable Property - Section 65(105)(zzzz) of the Finance Act, 1994 - Appellant rented their premises to various clients under lease agreement and collected Service Tax from them - Held that:- the issue of discharge of Service Tax liability on the amount of rent collected is no more res integra as due to retrospective amendment tax needs to be discharged for the material period in question and we uphold the same. As regards interest is not payable on Service Tax, we do not agree with the contention raised by the Chartered Accountant for the simple reason that the Service Tax liability was always leviable on the immovable property, hence non payment of tax attracts interest. Accordingly, the Service Tax liability and interest thereof are upheld. Imposition of penalty - Held that:- the appellant having discharged the Service Tax liability and the interest thereof has to be extended the benefit of Section 80(2) of the Finance Act, 1994. These provisions were specifically brought into statute in order to not to impose penalty on the service providers under the renting of immovable property during relevant period, accordingly appellant need not be vitiated (sic) with penalty. - Appeal disposed of
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