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2022 (2) TMI 60 - AT - Service TaxLevy of Service Tax - amount received by the appellant prior to 1.7.2010 as rent for leasing vacant land - period from 5.8.2008 to 20.1.2010 - Department has relied on Notification No. 36/2010-ST to allege that the amount received by them are mere advances and that the said consideration has to be apportioned to future period after 1.7.2010 when the activity of leasing vacant land has become taxable - HELD THAT:- The view taken by the department is entirely erroneous. When the activity of leasing of vacant land has become taxable only with effect from 1.7.2010, the amount received by the appellant for such activity prior to 1.7.2010 cannot be subject to levy of service tax even though the lease may extend after the period 1.7.2010. If the appellant received any amount for such lease after 1.7.2010 it may be taxable. However, in the present case, there is no allegation that the appellant has received any rent / consideration after 1.7.2010. This being so, the demand cannot sustain. The issue stands covered by the decision of the Hon'ble High Court of Allahabad in the case of COMMISSIONER OF SERVICE TAX, NOIDA VERSUS M/S GREATER NOIDA DEVELOPMENT AUTHORITY, GREATER NOIDA [2015 (10) TMI 296 - ALLAHABAD HIGH COURT] where it was held that Renting of vacant land by way of lease or licence (irrespective of the duration or tenure), for construction of a building or a temporary structure for use at a later stage in furtherance of business or commerce is a taxable service only from 1.7.2010, and not so, earlier to this date. Appeal allowed - decided in favor of appellant.
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