TMI Blog2018 (7) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of Section 77 (c) of the Finance Act 2010 has held that Recovery shall be made of all such amounts of service tax, interest or penalty or fine or other charges which may not have been collected or, as the case may be, would not have been refunded as if the said amendment had been in force at all material times - the demand of interest in respect of the amounts paid by the appellant on amount of retrospective amendment upheld. Exclusion of value of Penalties imposed on tenants - breach of contract - Held that:- It is apparent that the amounts received or account of breach of contract would be covered under the scope of the term any other services in relation to such renting . it is pertinent to note that the arrangement with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that when Service Tax was imposed on the activity in relation to renting of removable property for use in the course of or furtherance of business or commerce, the same was challenged and was interpreted by Hon ble High Court of Delhi, in the case of Home Solutions Retails Ltd 2009 (14) STR 433 (Del). Subsequently, however they said definition of Service was amended and the services of renting of immovable property or any other services in relation to such renting, for use in course of or furtherance of business or commerce, was made taxable with retrospective effect from 01.06.2007. The said levy was challenged in Hon ble High Court of Mumbai in case Retailer Association of India 2011 (23) STR 561 Mum, wherein, the said levy was held to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e argued in this circumstances benefit of Cum Tax Value should be extended to them. He relied on the decision of Hon ble Apex Court in case of Advantage Media Consultant 2009 (14) STR J 49 SC. 3. Ld. AR relies on the impugned order. He pointd out that Tribunal in the case of Indiabulls Properties Pvt Ltd, in similar circumstances has upheld the demand of interest, in respect of Service Tax paid on account of retrospective amendment. He pointed out that the decision relied upon by the appellant is single member decision, whereas, the decision in the case of Indiabulls Properties Pvt Ltd (Supra) is a division bench decision. 4. We have gone through the rival submissions. We find that as far as demand of interest on the amounts paid cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is not merely the service of renting of immovable property but also includes any other service in relation to renting . It is apparent that the amounts received or account of breach of contract would be covered under the scope of the term any other services in relation to such renting . it is pertinent to note that the arrangement with the tenant is that if the property is rented for x period the rent is y an if the property is vacated before completion of the x period an additional amount is required to be paid. The amount to be paid cannot treat as the penalty but as a condition of renting or differential rent. The taxable service also includes Services in relation to the activity of renting. Thus, the amounts recovered on accou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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