9911796707
TMI Blog2024 (4) TMI 963X X X X Extracts X X X X X X X X Extracts X X X X ..... hy indicated that CSITA have been renting out their shops and premises for commercial activities and receiving rental charges which is taxable under the category of 'renting of immovable property service'. The assessee neither registered with the department under the said service category nor paid service tax on the taxable amount received by them. A show cause notice dated 07.04.2014 was issued to the assessee for the period 1.10.2008 to 30.9.2013 proposing to demand the service tax along with the interest and also for imposing penalty. Before adjudication the assessee paid the amount of service tax applicable to period after 30.06.2012 along with interest opting for Voluntary Compliance Encouragement Scheme (VCES). After due process of law the original authority confirmed the demand of service tax along with interest and imposed penalties for the period up to 30.06.2012. The amount paid as interest for the period after 30.06.2012, under VCES was ordered to be appropriated towards interest for the period prior to 30.06.2012. The penalties proposed for the period after 30.06.2012 was set aside. Aggrieved by the said order of confirmation of demand of service tax, interest penalties ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs of the church. The object of the trust/association is to acquire sites for building and to build, alter or enlarge such buildings and also maintain churches, chapels, churchyards, burial grounds, schools, colleges, organizations. Thus, the object of the trust / association is essentially religious and therefore the adjudicating authority ought to have considered that the assessee being a religious body is excluded from the levy of service tax under renting of immovable property. 4. The assessee produced certificate issued by the Income Tax department under Section 10 (23C) (v) of Income Tax Act 1961 wherein it is stated that the assessee is a religious and charitable institution/association. However, the said certificate was brushed aside by adjudicating authority stating that the assessee is only a religious and charitable association and cannot be considered as a religious body. 5. The decision rendered by the Tribunal in the case of Diocese of Tanjore Society Vs Commissioner of GST & Central Excise, Trichy (2023) (9) TMI 871 CESTAT Chennai was relied by the Ld. Counsel to submit that in the said case the Tribunal has discussed similar facts wherein it was held that Diocese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2008 to 30-09-2013. For the period after 30.06.2012, the assessee has paid the service tax along with interest under VCES. The assessee is not contesting the liability for the period post 30.06.2012. The definition of Renting of immovable property service for the period up to 30.06.2012 reads as under:- A per Section 65(90a) of Finance Act, 1994 "renting of immovable property" includes renting, letting, leasing, licensing or other similar arrangements of immovable property for use in the course or furtherance of business or commerce but does not include - (i) renting of immovable property by a religious body or to a religious body; or (ii) renting of immovable property to an educational body, imparting skill or knowledge or lessons on any subject or field, other than a commercial training or coaching centre; Explanation 1. - For the purposes of this clause, "for use in the course or furtherance of business or commerce" includes use of immovable property as factories, office buildings, warehouses, theatres, exhibition halls and multiple-use buildings; Explanation 2.- For the removal of doubts, it is hereby declared that for the purposes of this clause "renting of immovabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the common understanding would have to be taken into consideration. By definition a Diocese is a district under the pastoral care of a Bishop of the Christian Church. As per the Cambridge Dictionary a Diocese is 'an area controlled by a bishop'. As per the Merriam-Webster Dictionary it is 'the territorial jurisdiction of a bishop'. From the facts stated at para 5.1 and the discussions herein it is clear that in the context of service tax levy, the Diocese is found to be infused with the character of a religious body. It has been held by the Hon'ble Supreme Court in Plasmac machine Mfg. Co. (P) Ltd. vs Collector of Central Excise, [1991 supp. (1) SCC 57], that 'where definition of a word has not been given, it must be construed in its popular sense". So also, in M/s Indo International Industries vs Commissioner of Sales Tax, Uttar Pradesh, [1981 (2) SCC 528], it has been held that "if any term or expression has been defined in the enactment then it must be understood in the sense in which it is defined but in the absence of any definition being given in the enactment the meaning of the term in common parlance or commercial parlance has to be adopted". 5.4 Having found that the Di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, to be understood as including religious purposes also. Point 1 is held against the society." (emphasis added) The judgment of the Hon'ble Supreme court has clarified the position that charitable purposes is to be understood as including religious purposes also. 5.5 The onus of proof of fulfilment of condition subject to which an exemption may be admissible lies on the assessee or upon a party claiming benefit under a notification, but in the case of subjecting an activity to levy under a taxing statute, the onus is on Revenue. Merely because the Diocese is registered under the Societies Registration Act, 1860, it cannot be said that it automatically means that the Diocese is not a religious body. In the light of the discussions above Revenue has failed to establish that the Diocese is not a religious body and will be covered by the definition under section 65(90a) of the Finance Act 1994. Hence, we find that the assessee will be subject to levy under service tax for renting of immovable property only from 01/07/2012 and not before that date. The assessee also agrees that they are liable to pay service tax from 01/07/2012. 10. The Tribunal held that the assessee th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
