TMI Blog2018 (11) TMI 749X X X X Extracts X X X X X X X X Extracts X X X X ..... g authority - matter remanded for such verification. Penalties - Held that:- During the impugned period, the issue whether Renting of Immovable Property is subject to levy of service tax, was under litigation - the matter is still pending consideration before the Hon’ble Apex Court - being an interpretational issue, the levy of penalty under Section 78 of the Act ibid., cannot sustain and requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le to service tax under Renting of Immovable Property Service. On verification of records, it was found that they have not discharged the service tax. Show Cause Notice dated 18.09.2013 was issued for demanding the service tax along with interest and for imposing penalties. After due process of law, the Original Authority confirmed the demand of ₹ 3,45,602/- along with interest and also impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, the Department has erroneously raised demand on these amounts also. She prayed to set aside the demand in regard to such amount. 2.3 The third argument put forward by the Ld. Counsel was to set aside the penalties. She submitted that the issue whether Renting of Immovable Property is subject to levy of service tax was under litigation for a long period and the matter had reached the Hon ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty for fresh consideration. 6. The Ld. Counsel has argued to set aside the penalties. We do take notice that during the impugned period, the issue whether Renting of Immovable Property is subject to levy of service tax, was under litigation. There were cases filed by the tenants also. In M/s. Homes Solution Retail India Ltd. vs. Union of India- 2009 (237) E.L.T. 209 (Del.) the Hon ble Delhi H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res to be set aside which we hereby do. 7. From the discussions made above, the matter is remanded to the adjudicating authority to look into the issue of abatement of property tax paid by the appellant as well as to verify whether the rent dues for the period prior to 01.06.2007 have been included in the demand. The impugned Order is modified to the extent of setting aside the penalty imposed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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