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2016 (12) TMI 226 - CESTAT CHANDIGARHLevy of service tax or VAT? - activity of leasing of building and machinery to various clients. On this activity, the appellant is paying/booking VAT on the amount of consideration received by them, as they have given right to use the property/machinery - whether the activity amounts to provision of service or sale? - Held that: - I find that in this case, the appellant was paying/booking VAT on the Lease amount. As per the VAT Act, right to use property is liable to VAT also. In that circumstances, it cannot be alleged against the appellant that they have suppressed facts, therefore, the payment of service tax along with interest is sufficient and qualifies as per section 73(3) of the Finance Act, 1994 - I hold that as the appellant was paid service tax along with interest on being intimated to the appellant. No penalty is imposable on the appellant, therefore, the impugned order is qua imposing penalty is set aside - appeal allowed in favor of assessee.
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