9911796707
TMI Blog2025 (5) TMI 1134X X X X Extracts X X X X X X X X Extracts X X X X ..... aside and refund application filed by the respondent has been allowed in view of the provisions of Section 104 of the Finance Act, 1994. 2. The respondent is 100% EOU and is engaged in the manufacture of natural health, sesame seeds, extra virgin sesame oil, and sesame cake etc. The respondent was initially allotted Plot No.SP-20 ad-measuring 20,000 sq. mts. for undertaking industrial activity by Rajasthan State Industrial Development and Investment Corporation Ltd. RIICO vide registered lease dated 21.05.1999 for a period of 99 years. The respondent applied for change of land use from industrial to commercial which was approved by RIICO on payment of conversion charges along with service tax amounting to Rs.1,50,44,629/- to RIICO, which t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny other person. Reviewing the said order, the Revenue has filed the present appeal before this Tribunal. 4. Having heard both sides and perused the records of the case, we find that the refund claim has been allowed as it has been held that no service tax is leviable on conversion charges paid to RIICO for change of land use from industrial to commercial and hence the same was refundable in terms of Section 104(2) of the Act. 5. The provisions of Section 104 has been inserted in the Finance Act, 1994 w.e.f 31.03.2017 and the same reads as under :- "[Special provision for exemption in certain cases relating to long term lease for industrial plots. 104.(1) Notwithstanding anything contained in Section 66, as it stood prior to the 1st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent, industrial development, corporation, or undertaking or industrial units by way of grant of long-term lease of 30 years or more of industrial plots during the period commencing from 1st day of June, 2007 and ending with the 21st day of September, 2016. Further, Clause (2) provides that refund shall be made of all such service tax which has been collected but would not have been so collected if sub-section (1) had been in force at all material times. In terms of the said provisions, there is no iota of doubt that the conversion charges were towards the change in the nature of the land use for which RIICO has merely granted an approval and it cannot be linked to providing any activity resulting in performing of service. Hence, no service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 104 of the Finance Act, 1994. The relevant para is set out below:- "15. Admittedly, substantial part of the demand against the appellant in various proceedings, relate to their Service Tax liability on lump-sum premium amount, received by them from the allottees on allotment of land on long term basis. In view of the introduction of new Section 104 in the Finance Act, 1994 the appellant's liability on such consideration no longer exists. The one-time payment received for grant of long term lease of 30 years or more of industrial plot, is not liable to Service Tax for all the periods covered in the present proceedings. " 8. On the issue of unjust enrichment, the Commissioner (Appeals) has also considered the aspect whether the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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