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2018 (9) TMI 1722 - AT - Service TaxRenting of Immovable Property Service - Rents Received by the appellants after 01.06.2007 - Held that:- If the amount includes rents pertaining to the period prior to 01.06.2007, it can be easily verified by looking into the payments received by the appellants after 01.06.2007 - appellants have to be given one further chance to establish this plea raised by them - the issue is remanded to the adjudicating authority for re-consideration. Real Estate Agents Service - demand has been defended by the appellants saying that the transaction does not involve any activity which attracts “Real Estate Agents Service” - Held that:- The appellants have paid Income-tax on Capital Gains for the amount received from M/s. CCCL. Thus, it can be seen that it is a transfer of right/interest in property by the appellants to purchaser M/s. CCCL. The said transaction cannot in any way take the colour of “Real Estate Agents Service” - demand set aside. Business Auxiliary Service - sale of shares by appellants to M/s. M/s. Rattha Citadels OMR Apart Hotel Pvts Ltd. - main ground for alleging that the transaction would fall within the “Business Auxiliary Service” is that the shares of face value of ₹ 10/- has been sold by the appellants at a premium of ₹ 21.80/- per share, when the company was reeling under financial loss - Held that:- Whatever be the circumstances under which the shares were sold or the premium of the shares was fixed between the parties, the transaction of sale of share in no way can be considered as an activity promoting the business of the purchaser of the shares. It is indeed Sale of Shares and, therefore, the demand on this count cannot sustain - demand set aside. Input tax credit - input services used in the construction of buildings - denial on account of nexus - Held that:- This issue has been settled in the case of M/s. Sai Samhmita Storages (P) Ltd. [2011 (2) TMI 400 - ANDHRA PRADESH HIGH COURT] where the Hon'ble High court in the said decision held that the credit of input services used for setting up a warehouse for providing the Output Service of “Storage and Warehousing Services”, was admissible - disallowance of credit of input service used for Construction of buildings is unjustified. Appeal allowed in part and part matter remanded.
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