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2017 (11) TMI 886 - AT - Service TaxRenting of immovable property Service - sale of space or time for advertisement by municipalities / corporations - Held that: - reliance placed in the case of Municipal Corporation Rajahmundry. Versus Commissioner of Service Tax & Central Excise-Visakhapatnam [2017 (7) TMI 685 - CESTAT HYDERABAD], where it was held that there cannot be any dispute on taxability on this score when the said activity is not being shown to be covered by any exclusion or exemption from service tax thereof. We therefore hold that this activity will definitely be leviable to service tax but only for the normal period of limitation. Further, it was held in the case that if the amounts received by the appellants are only towards advertisement tax collected by them under statutory powers bestowed on them, that activity cannot be brought under ambit of service tax and the taxable value thereof cannot be taxed as sale of space and time for advertising service. We dispose of the appeals filed by municipalities and municipal corporations by upholding the service tax liability with interest but setting aside the penalties imposed by the lower authorities. Penalties - Held that: - since the penalties on similarly placed corporations/municipalities are set aside we find that the lower authorities were correct in not imposing any penalties/setting aside the penalties. Appeal allowed in part.
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