2016 (10) TMI 1165 - AT - Service Tax

Penalty - whether the penalty is leviable for delay in deposit of service tax relating to Renting of Immovable Property when legislature intended to grant immunity from prosecution against such delay due to interpretational difficulty arose prior to Home Solutions Retail Ltd. 2010 (5) TMI 3 - DELHI HIGH COURT , where it was held that there shall be no recovery of service tax from the petitioner in respect of renting of immovable property alone? Held that - Bench in the case of M/s. C.B. Venkatesh & CO. Vs. CCE & ST, Coimbatore, 2015 (9) TMI 1605 - CESTAT CHENNAI , held that no levy of penalty on the appellant, in absence of appellant s contumacious conduct and appreciating that levy was crystalized by the judgement of the Hon ble High Court of Delhi in the case of Home Solutions Retail Ltd. Vs. UOI. Appeal allowed.

Summary

The judgment dealt with the issue of penalty for delay in depositing service tax on 'Renting of Immovable Property'. The Appellate Tribunal decided in favor of the appellant, citing a previous decision and the intention of the legislature to grant immunity from prosecution in such cases due to interpretational difficulties. The penalty was not levied due to the absence of contumacious conduct by the appellant.