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2023 (11) TMI 260 - AT - Service TaxNon-payment of service tax - Renting of Immovable Property Services - receipt of payouts on account of against transfer fee, forfeit charges, tamir izazat, annual lease, rent of shops and other rent - recovery alongwith interest and penalty - benefit of section 80 of FA. One of the grounds of appeal is that the Revenue has failed to consider the fact that the appellant is a municipality and its duties are well covered under the provisions of Section 66D of the Finance Act (the negative list). HELD THAT:- Initially this Tribunal vide its Final Order No. 53436- 53500/2017 dated 25.05.2017 in the case of M/s. Krishi Upaj Mandi Samiti [2017 (5) TMI 1465 - CESTAT NEW DELHI] has decided the issue of taxability and held that the appellants are not liable to service tax on shops/ sheds/platforms/land leased out in the notified market area for traders for temporary storage of agricultural produce traded in the market. In respect of shops, premises, buildings, etc. rented/leased out for any other commercial purpose other than with reference to agricultural produce (like bank general shop etc.), the same shall not be covered by the negative list and the appellants shall be liable to service tax. Otherwise also, it is observed that the appellant had admitted their tax liabilities. In view of the said settled provision and the admission of the appellant for his liability, there are no infirmity in the order confirming the impugned demand. Since the appellant had never declared the fact of the income received by renting of immovable property which was purely and admittedly for the purposes of commerce, there are no infirmity in the order imposing penalties under Section 75, 76, 77 and 78 of the Finance Act. Benefit u/s 80 of FA - HELD THAT:- Though the appellant claimed the benefit under Section 80 but we do not find any reasonable cause with the appellant justifying the non-payment of service tax on the income which was being received for a long period of 5 to 6 years from renting of immovable properties, also the amount of service tax as confirmed against the appellant was not paid along with the interest in full within the stipulated time. Hence, there are no reason to extend the benefit of Section 80 of the Act to the appellant. Appeal dismissed.
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