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2021 (3) TMI 1017 - HC - Service TaxLevy of service tax - renting of immovable property Service - case of the petitioner in this writ petition is that it is a charitable institution recognised under the provisions of the Income Tax Act, 1961 and therefore the petitioner cannot be saddled with service tax liability even if the petitioner was renting out its premises to business entities on the income generated by it is used for carrying out its charitable activities - HELD THAT:- If the petitioner was of the view that it was not liable to tax in terms of the above notification, it could have ignored the aforesaid letter/communication. The said communication was an innocuous communication merely nudging the petitioner to obtain registration and pay service tax or any alternative avail the benefit of the Voluntary Compliance Encouragement Scheme, 2013. However, the petitioner approached the first respondent for an individual exemption and thereafter filed the said writ petition. Pursuant to the aforesaid order in the said writ petition, the impugned order has been passed. There was no necessity on the part of the petitioner to have filed the said writ petition and invited the above observation. If the petitioner felt that it was not liable to pay tax for renting of its immovable property based on the above Notification No. 25/2012-ST dated 20.6.2012, it should have ignored the persuasion of the officers of the Service Tax Department - petitioner shall thereafter give its reply explaining the reasons as to why it is not liable to pay service tax for renting of immovable property to the banks in terms of Notification No. 25/2012-ST dated 20.6.2012. The jurisdictional officer shall adjudicate the show cause notice without getting influenced by any of the observations in the impugned communication of the 1st/5th respondent which stands quashed. Petition disposed off.
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