TMI Blog2011 (10) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... r the present purpose, we would consider "renting of immovable property service" having been provided by the appellant to the second party under the aforesaid MoU. - We would also consider the so-called 'royalty' as rent collected by the appellant from the other party. These parameters appear to constitute "renting of immovable property service" rendered by the appellant to the other party during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... head renting of immovable property and the same is on royalty (in the appellant's parlance) or rent (in the department's parlance) collected by the appellant from M/s. Margadarshi Marketing Pvt. Ltd., to whom certain building/ show-room (immovable property) was given by the appellant for commercial activity under a Memorandum of Understanding (MoU) dated 29.12.2001. Under the MoU, M/s. Marga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that the 'taxable event' occurred in February 2002. It is submitted that 'renting of immovable property' was introduced as a new levy with effect from 1.6.2007 only. According to the learned counsel, what matters is the time at which the service was rendered or the taxable event took place and not the time at which the consideration for it was collected. On this basis, the learned counsel h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 3 of Section 67 of the Finance Act 1994 in his endeavour to make out a case for the Revenue. 4. After giving careful consideration to the submissions, we are not inclined to accept the argument advanced by the learned counsel with reference to "taxable event". It is not in dispute that the MoU which came into force on 1.2.2002 is still in force. During the period for which royalty was collect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od and the same is time-barred. For the present purpose, we would take into account the other half (demand for normal period). The amount of service tax demanded for the normal period works out to a little over Rs.34,00,000/-. In the absence of plea of financial hardships, we direct the appellant to pre-deposit an amount of Rs.34,00,000/- (Rupees thirty four lakhs only) within six weeks and report ..... X X X X Extracts X X X X X X X X Extracts X X X X
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