TMI Blog2018 (8) TMI 1978X X X X Extracts X X X X X X X X Extracts X X X X ..... e with intent to evade payment of service tax. Extended Time of Limitation - HELD THAT:- It is undisputed fact that doubts and disputes prevails over the issue and the court also held the levy of service tax on renting of immovable property as per un-amended definition is not service. However, after amendment made by the Finance Act, 2010, the amended definition is held as service in the Second Home Solutions Retailers case. As a result, larger period of limitation is not invokable. Renting on immovable property has been a subject matter of litigation in various judicial forums. The demand cannot invoke extended period as the issue was not free from doubt. In the present case, the whole demand is for extended period only. The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India Ltd. V. Union of India (2009) 14 STR 433. The High Court first observed that service tax being a tax on value addition, provided by a service provider, if there was no value addition, then there would be no service . With the aforesaid observation in mind, the High Court analysed the provisions of Section 65 (105)(zzzz) of the Act, and came to the conclusion that, insofar as renting of immovable property for use in the course of or furtherance of business or commerce was concerned, any value addition could not be discerned. The High court therefore held that Section 65 (105)(zzzz) did not in terms entail that the renting of immovable property for use in the course of or furtherance of business or commerce would by itself constitute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formation of such belief. Mere contravention of provisions of law is not sufficient to invoke extended period of limitation. Contravention necessarily has to be with intent to evade payment of service tax. I also find from the statement of facts that it is clear that levy of service tax on renting of immovable property was under challenge before the Hon ble Delhi High Court and the Hon ble Delhi High Court held that the definition of taxable service as provided under Section 65 (105)(zzzz) is not a service , and in order to overcome the difficulty the Finance Act, 2010 substituted the above sub section retrospectively. Consequent upon the above situation, the appellant was under the bona fide belief that levy of service tax on renting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar Drug, reported in AIR, 1989 (SC), 832. Where in it is held that suppression does not mean mere in action or failure on the part of the manufacturer does not amount to suppression of fact but conscious or deliberate withholding of information when the manufacturer knew otherwise. (ii) Pushpm Pharmaceuticals, -vrs- C. C. E. reported in 1995 (78) ELT 401 (SC), where in it is held that, suppression does not mean omission. The Act of Suppression must be deliberate. It means that correct information was not disclosed deliberately to escape payment of duty. (iii) Padmini Products, -vrs- C. C. E., reported in 1990 (76) SCT. 411 (SC), where in it is held that mere non declaration is not sufficient to invoke larger period on the ground of su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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