TMI Blog2017 (11) TMI 1111X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 - demand upheld. Extended period of limitation - Held that: - the demand of service tax is to be upheld only for the normal time limitation period - Only for the limited purposes of quantification of the demand falling within the normal time limit, the case is remanded to the adjudicating authority. Appeal allowed - decided partly in favor of appellant. - ST/58283/2013-CU[DB] - ST/A/57376/2017-CU[DB] - Dated:- 26-10-2017 - Mr. (Dr.) Satish Chandra, President And Mr. V. Padmanabhan, Technical Member Present Shri Mahindra Gargey, Advocate for the appellant Present Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority (supra) , the Tribunal observed as under: 11. In our considered view, clause (zzzz) of Section 65(105), prior to 1-7-2010 does not embrace renting of land within scope of the enumerated taxable service. On true and fair construction of the main part of clause (zzzz) it is clear that renting of any immovable property for use in course for furtherance of business or commerce is the taxable service and this would clearly include a lease of vacant land as well. Explanation 1 to this clause (prior to the amendatory exercise in 2010) signalled, through the inclusionary clause various facets of transactions which would also amount to renting of immovable property . On established principles of statutory interpretation, normally an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (v) in Explanation 1 has significantly altered and extended the scope of the taxable service, with effect from 1-7-2010 and consequently 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 1 (introduced in 2010), was a mere clarificatory endeavour, explicating the implicit and inherent meaning of Section 65(105)(zzzz). Clause (v) is cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )(zzzz), of the Act. These several contemporaneous exposition and administrative constructions and the scope of sub-clause (v) of Explanation 1 in Section 65(105)(zzzz) fortify the conclusion the scope of sub-clause (v). To modify and expand the scope of the taxable service to cover and include vacant land on lease or licence for construction of a building or a temporary construction at a later stage to be used for furtherance of business or commerce, within the ambit of immovable property is thus the taxable service. Since the introduction of this sub-clause in Explanation 1 expands the scope of the taxable service and renders the taxable (a) hitherto non-taxable transaction, and absent of explicit retrospective reach provided to the ame ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e normal limitation period and the same is to be quantified by the Commissioner. The penalty on the Appellant under Sections 77 and 78 is set aside. 6. By following the decision of the Tribunal (supra), we are of the view that the demand of service tax is to be upheld only for the normal time limitation period. 7. Only for the limited purposes of quantification of the demand falling within the normal time limit, the case is remanded to the adjudicating authority. 8. In view of the above discussions, the impugned order is modified as above and the matter remanded to the adjudicating authority only for the purpose of restricting the demand within normal time limit. [Order Pronounced in the open court on 26.10.2017] - - Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
