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2019 (3) TMI 447 - AT - Service TaxNon-payment of service tax - Renting of Immovable Property Services - non-payment of service tax for the period from June 2007 to March 2013 - Held that:- The appellants’ status as an authority created under Rajasthan State enactment is not in dispute. Their overall functions and the activities were regulated by the said enactment and the rules made thereunder is also an admitted fact. The appellant strongly pleaded that they are allotting land/shops to various traders in furtherance of their statutory functions for promoting welfare of agriculturists - but here that the allotment of land/shops to the traders is not in terms of the Rajasthan Agricultural Produce Markets Act, 1961 or the rules made thereunder. In fact, allotments of land and shops were made by the appellants in terms of the Immovable Property Allotment Rules, 2005 and the fees are received for such allotments, thus, the arrangement for Renting of Immovable Property for a consideration. The claim of the appellant that the allotment of shop or land to the traders cannot be considered as “renting of immovable property” is not tenable. Extended period of limitation - penalty - Held that:- The tax entry “renting of immovable property service” itself was subject matter of serious litigation in various judicial forum - also, considering the status of the appellant as a Government Organisation, the ingredients for invoking demand for extended period are not present in the present case - demand upheld for normal period - penalty also set aside. Appeal allowed in part.
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