2014 (3) TMI 1081 - AT - Service Tax

Waiver of pre-deposit - demand on the ground that the appellant had not discharged the Service Tax liability on the rent received by them for leasing the vacant land to various parties - Held that - for the period prior to 1-7-2010, wherein the appellant has executed a lease deed of the vacant land under their control and the amount received by them as lease rent, seems to be prima facie out of the purview of the tax under the category of renting of immovable property - amendment brought in from 1-7-2010 is not indicated as of retrospective nature - pre-deposit waived - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Stay petition for waiver of pre-deposit of Service Tax liability, interest, and penalty confirmed by the adjudicating authority for the period from 2007-2008 to 2010-2011.

Analysis:
1. The appellant filed a Stay Petition seeking waiver of pre-deposit of an amount confirmed as Service Tax liability, interest, and penalty. The adjudicating authority confirmed the amounts due for the period from 2007-2008 to 2010-2011 concerning rent received for leasing vacant land.

2. The appellant argued that the taxability of rent received for vacant land was introduced into the statute from 1-7-2010. They contended that prior to this amendment, no tax was payable on such transactions. Referring to Circulars and a previous Tribunal decision, the appellant claimed that the amendment was not retrospective and supported their case with evidence of payment post-amendment.

3. The Departmental Representative supported the lower authorities' findings, emphasizing the liability for the entire period in question.

4. The Tribunal analyzed the situation and agreed with the appellant's contention. They observed that for the period before 1-7-2010, the lease rent for vacant land might not fall under taxable categories. Citing a previous Tribunal decision, the Tribunal noted that the amendment effective from 1-7-2010 was not retroactive. Therefore, they found the appellant had a strong prima facie case for waiver of the pre-deposit amounts. Consequently, the application for waiver was allowed, and recovery stayed pending appeal disposal.