2014 (2) TMI 759 - AT - Service Tax

Levy of penalty - renting of immovable property - Held that - In terms of the Hon ble Delhi High Court decision in the case of M/s. Home Solution Retail India 2009 (4) TMI 14 - DELHI HIGH COURT , it was held that the service of renting of immovable property by itself cannot be regarded as service. Subsequently, there was retrospective amendment introduced with effect from 01.06.2007 by Finance Act, 2010 and the renting of immovable property was made taxable service undo the effect of judgment of the Hon ble Delhi High Court. Appellant cannot be held guilty of any malafide, so as to impose penalty upon him. - penalty set aside - Decided in favor of assessee.

Summary

The judgment involves the payment of Service Tax on renting of property. The appellant was not penalized due to a retrospective amendment making renting of property a taxable service. The penalty imposed was set aside, confirming the demand of Service Tax and interest.