2016 (10) TMI 1227 - AT - Service Tax

Renting of immovable property Service - Time Limitation - Held that - Tribunal in the cases of Sujala Pipes Pvt. Ltd. Vs. CCE 2014 (7) TMI 932 - CESTAT BANGALORE has held that the longer period of limitation would not be available to the Revenue - Inasmuch as admittedly a part of demand falls within the limitation period, matter remanded to the original adjudicating authority for requantifying the demand within the limitation period - appeal allowed by way of remand.

Summary

Issues:
1. Taxability of service of renting immovable property
2. Point of limitation for demand of service tax

Analysis:
1. Taxability of service of renting immovable property:
The judgment addresses the confirmation of service tax against the appellant for the alleged service of renting of immovable property provided during a specific period. The appellant does not dispute the taxability but challenges the impugned order on the grounds of limitation. The advocate for the appellant argues that the demand for most of the period would exceed the normal period of limitation. The advocate relies on previous Tribunal judgments in cases like Sujala Pipes Pvt. Ltd. Vs. CCE and Jindal Vegetable Products Ltd. Vs. CCE to support the contention that the longer period of limitation should not be applicable to the Revenue due to the retrospective amendment brought in the Finance Act, 2002 neutralizing a previous High Court decision. The Revenue, represented by the DR, acknowledges the applicability of the Tribunal's decision on limitation.

2. Point of limitation for demand of service tax:
The Tribunal, considering that a part of the demand falls within the limitation period, sets aside the impugned order. The matter is remanded to the original adjudicating authority for the reevaluation and quantification of the demand within the limitation period. The judgment concludes by disposing of the appeal based on the above terms, ensuring that the demand is reexamined within the applicable limitation period. The decision emphasizes the importance of adhering to the statutory limitation period in tax matters and the impact of retrospective amendments on the availability of longer periods for tax demands.