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2016 (10) TMI 797 - AT - Service TaxRental income - consideration from letting of spaces for advertisement - Held that: - I find that the appellant is a Municipality, a Statutory body under the Control of the State Government. It is further evident that they have maintained proper records of their transactions. It is further evident that service tax was not paid in absence of advise from their competent Authority and/or from the side of Revenue from the date of imposition. It is further fact on record that after receipt of the show cause notice, in close proximity of that, the appellant took registration and have started paying the service tax both on renting of immovable property and sale of space for advertisements. It is further evident that the Ld. Commissioner (Appeals) have found that there is no element of fraud or suppression on the part of the appellant-Nagar Palika Praishad and accordingly have deleted the penalty under Section 76 & 78 of the Act. Extended period of limitation - once it is held that there was reasonable cause for failure to pay tax and the penalties have been deleted, as a corollary invocation of the extended period of limitation is equally and unjustified. The appellant-assessee is not liable to pay tax for the extended period and shall be liable to pay the tax only for the normal period with interest. decided partly in favor of assessee.
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