TMI Blog2014 (2) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... nding service tax from 1 June 2006 to 31 May 2007 has been issued on 22 October 2009. This non payment of service tax by the appellant for the period 1 May 2006 to 31 May 2007 in the present facts could prima facie be considered to be on a bonafide understanding that it is not liable to service tax - Pre deposit reduced to 25% of service tax demand - Decided partly in favour of assessee. - Central Excise Appeal No. 170 of 2013 - - - Dated:- 29-1-2014 - Mohit S. Shah, C.J. And M. S. Sanklecha,J. For the Petitioner : Mr. V. Sreedharan, Senior Advocate along with Mr. Prakash Shah and Jas Sanghavi i/by PDS legal For the Respondent : Mr. V. H. Kantharia along with Ms. Anamik Malhotra ORDER PC: This appeal under Section 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed into the Act. Immediately on the introduction of the above entry, the appellant commenced discharging service tax on its aforesaid activities under the category renting of immovable property . The revenue has been accepting the service tax paid by the appellant on the aforesaid service under the head renting of immovable property till date. In the mean time on 22 October 2009, a show cause notice was issued to the appellant demanding service tax of Rs.3,44,45,034/along with interest thereon in respect of services rendered under the category of business support services for the period 1 May 2006 to 31 May 2007. The Commissioner of Service tax by an order dated 14 March 2012 adjudicated upon the show cause notice and confirmed the deman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above case as in this case, the appellant therein commenced making payment of service tax in respect of its conducting agreement under the new entry viz. renting of immovable property with effect from 1 June 2007. This new entry was not carved out of any existing entry and has been made taxable for the first time. In view of the fact that the appellant also commenced making payment of service tax on renting of immovable property with effect from 2007 there was no question of providing a business support service prior to 1 June 2007. Besides, it was submitted that the contention of the appellant that the demand is entirely time barred on account of its bonafide belief was not even considered by the Tribunal. 10) On the other hand, Mr. K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d be classifiable under the head business support service. 12) However, we find that the appellant of its own commenced paying service tax with effect from 1 June 2007 on the introduction of renting of immovable property. This itself would show that there was a bonafide belief on the part of the appellant that services being rendered by them was not taxable prior to 1 June 2007. The respondent revenue has accepted the service tax under the head renting of immovable property till date without any objection. It was only after two years after the appellant had commenced paying service tax under the category of renting immovable property that a show cause notice demanding service tax from 1 June 2006 to 31 May 2007 has been issued on 22 Oct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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