Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2018 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 274 - AT - Service TaxDemand of Interest and penalty - activity in relation to renting of removable property for use in the course of or furtherance of business or commerce - the appellant has paid the Tax due for the period November 2008 to May 2010 on 05.07.2010, immediately after the activity was made taxable by virtue of retrospective amendment, with effect from 01.06.2007 - Held that:- As far as demand of interest on the amounts paid consequent to retrospective amendment are concerned the decision of Tribunal, in case of Indiabulls Properties Pvt Ltd [2016 (11) TMI 583 - CESTAT MUMBAI] is relevant, where the validating provisions of Section 77 (c) of the Finance Act 2010 has held that Recovery shall be made of all such amounts of service tax, interest or penalty or fine or other charges which may not have been collected or, as the case may be, would not have been refunded as if the said amendment had been in force at all material times - the demand of interest in respect of the amounts paid by the appellant on amount of retrospective amendment upheld. Exclusion of value of Penalties imposed on tenants - breach of contract - Held that:- It is apparent that the amounts received or account of breach of contract would be covered under the scope of the term “any other services in relation to such renting”. it is pertinent to note that the arrangement with the tenant is that if the property is rented for ‘x’ period the rent is ‘y’ an if the property is vacated before completion of the ‘x’ period an additional amount is required to be paid. The amount to be paid cannot treat as the penalty but as a condition of renting or differential rent - the amounts recovered on account of pre mature vacation of the rented premises can be treated has amount received ‘in relation to the renting of removable property’ and thus would be taxable Services. Penalties - Held that:- The appellant has paid the duty immediately after the enactment of the retrospective amendment. Prior to that they were genuine disputes regarding liability of Service Tax of the said activity and the matter had reached to Hon’ble Apex Court - penalty not warranted. Appeal allowed in part.
|