9911796707
TMI Blog2019 (3) TMI 1229X X X X Extracts X X X X X X X X Extracts X X X X ..... al Bank of India and as the same was falling within the limitation of Small Scale Exemption Notification, no Service Tax was being paid by them. 2. On 02/01/2008, the said tenants were given a notice by the appellant to vacate the premises within a period of one month. The Central Bank of India did not vacate the premises and kept on giving rent to the assessee at the agreed upon price. Thereafter, the appellant filed a Civil Suit against the said tenant and the Additional District Judge, Civil Court, Mujaffarnagar vide its order dated 28/08/2009, ordered the tenant - to vacate the premises as also to pay the pending rent amount of Rs. 8,267/-. Apart from the said order, the tenant was also ordered to pay compensation of Rs. 30,000/- per m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o whether the compensation awarded by the Additional District Judge, Civil Court, Mujaffarnagar, can be considered as assessable value of renting of the property in question, so as to make the same liable to Service Tax under the category of "Renting of Immovable Property." The appellant has strongly contested that in terms of the definition of "Renting of Immovable Property", only the consideration received for the use of the property can be considered to be as "Rent". The awards, awarded as a result of disputed litigations, can by no stretch of imagination, be considered as "Rent". 5. We have examined the order of Additional District Judge, Civil Court, Mujaffarnaga, wherein it stands observed by him that according to his views, petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he period is prior to the said new regime of taxation, the compensation received by the appellant cannot be considered to be taxable. We fully agree with the above contention of the learned Counsel. As already observed that there is no suggestive definition in the said category of "Renting of Immovable Property" so as to treat the compensation, which can be penal in nature or as damages to the property, or as a costs of litigation to the petitioners. The fact that compensation was declared as one of the taxable services w.e.f. 01/07/2012 also indicates that prior to the said date no tax can be collected on the compensation either indirectly or by treating the same as rent received. As such, we find no justification in the Revenue's stand. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
