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CCE, Goa Versus Mormugao Municipal Council

2017 (9) TMI 786 - CESTAT MUMBAI

Renting of immovable property service - Levy of tax - collection of Sopo charges from various persons for use of the vacant land in the municipal area - Held that: - The grounds of appeal do not contain any argument in support of appeal. In view of lack of any argument in the grounds of appeal, we do not find any reason to interfere with the impugned order in so far as the demand of service tax on Sopo charges for use of vacant land are concerned, especially since the issue is squarely covered i .....

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r the period prior to that the appellants can claim a bonafide belief that they are not liable to pay service tax. - Appeal dismissed - decided against Revenue. - ST/86798/15 & ST/CO-91193/15 - A/89050-89051/17/STB - Dated:- 18-7-2017 - Shri Ramesh Nair, Member (Judicial) and Shri Raju, Member (Technical) Shri M.P. Damle, AC (AR) for the appellant Shri S.D. Podtar, Advocate with Shri V.R. Nair, Advocate for the respondent ORDER This appeal has been filed by Commissioner of Central excise, Go .....

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ds. However, Commissioner (Appeals) has set aside the demands on Sopo charges. The Commissioner (Appeals) also held that the extended period of limitation cannot be invoked in these circumstances. He further extended the benefit of Section 80 of the Act. Aggrieved by the said order revenue are in appeal seeking imposition of service tax on the Sopo charges and also seeking invocation of extended period of limitation and imposition of penalty under Section 78 of the Finance Act. 2. Ld. AR for the .....

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ondents have filed Cross objection. Ld. Counsel for the respondent argued that certain markets are made by MMC as their duty under the Constitution of India. He argued that the Renting of Immovable Property service in such markets cannot be considered as taxable service. He argued that markets are developed in discharge of constitution responsibility under article 243(w) of the Constitution of India and the 12th schedule thereunder. He argued that MMC is not engaged in the trade or commerce and .....

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the public authority under the provisions of any statutory did not purview of the service tax. He pointed out that the said circular exempts activities which are in public interest and which are undertaken as mandatory or statutory function. 4. Apart from these issues, Id. Counsel raised the issue of demand on certain amounts claimed to have been collected as arrears of the rent for the past period and on which demand. of service tax has been confirmed. He also raised the issue that the service .....

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es rented out to government offices, institution or residential use. Since this ground has not been raised in the cross objection it is not open to the respondent to agitate this grounds before us. Similarly, the issue regarding collection of renting prior to 31.03.2007 has not been raised in the cross objection filed by the respondent and consequently the same cannot be raised before Tribunal in the form of written submissions. 6. We find that the Commissioner (Appeals) has held that Sopo is co .....

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ntly vacant land given on lease or licence, for construction of a building or a temporary structure, to be used at a later stage for furtherance of business or commerce, would be immovable property and renting of this immovable property would be the taxable service, since 1-7-2010. 13. In view of clear exclusion of vacant land from the ambit of immovable property prior to 1-7-2010 it cannot gainfully be contended by Revenue, that clause (v) to Explanation I (introduced in 2010), was a mere .....

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ppeal, we do not find any reason to interfere with the impugned order in so far as the demand of service tax on Sopo charges for use of vacant land are concerned, especially since the issue is squarely covered in decision relied on in the impugned order. 8. In so far as invocation of extended period of limitation is concerned, in respect of the first show-cause notice it is seen that the said show-cause notice covers the period 01.06.2007 to 31.10.2008. The show-cause notice was issued on 23.11. .....

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ssued invoking the extended period. It is apparent that once revenue had on 08.09.2008 informed respondent that they were liable to pay service tax on the rental income the case of bonafide for non-payment of service tax thereafter does not survive. However, it is seen that the period from 08.09.2008, first letter was received to the Chief Officer of the respondent the period would be covered from the normal period of limitation. Thus for the period prior to that the appellants can claim a bonaf .....

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s are part of the market developed by MMC as their constitutional responsibility. Ld. Counsel has sought to rely on the Article 243(w) and 12th schedule of 243(w), more particularly entry 12 and 17 thereof. The said article and the 12th schedule reads as under:- "Article 243W reads as under:- "243W - Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow- (a) the Municipalities with such powers and authority as may be necessary to enable them to f .....

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rs and authority as may be necessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule, " (c) The Twelfth Schedule of Article 243W (a)(ii) reads as under:- TWELFTH SCHEDULE (Article 243 W) 1. Urban planning including town planning. 2. Regulation of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial a .....

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