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2023 (8) TMI 186 - AT - Service TaxLevy of Service tax - renting of immovable property for the sale of agricultural produce, for the purpose incidental to agriculture - effect of Section 66D in the Finance Act from 01.07.2012 - HELD THAT:- It is observed from the decision of Hon’ble Supreme Court in Krishi Upaj [2022 (2) TMI 1113 - SUPREME COURT] case as relied upon by learned Departmental Representative that the licence fee collected for renting of immovable properties even by the public undertaking is liable to tax. However, from section 66D (d)(iv) of Finance Act (post negative list), it is clear that renting of land with or without structure for the purpose incidental to agriculture is not liable to tax. The demand in question is with reference to renting of immovable property for the sale of agricultural produce i.e. for the purpose incidental to agriculture. Hence, subsequent to introduction of Section 66D in the Finance Act from 01.07.2012 the activity in question doesn’t attract service tax liability. The demand for the period 2008-09 to 2011-12 confirmed - with respect to financial year 2012-13 the demand is confirmed for the period 1st April 2012 to 30th June 2012 but for the period with effect from 1st July 2012 to March 2013, the demand is hereby set aside - appeal allowed in part.
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