2009 (5) TMI 94 - AT - Service Tax

Service tax payable by appellant in respect of renting of immovable property to her clients was paid with interest prior to issuance of the relevant show-cause notice. According to the appellant, she never intended to evade payment of the tax. - High Court of Delhi in the recently decided case held that the renting of immovable property for use in the course or furtherance of business or commerce, by itself, did not entail any value addition and hence could not be regarded as a service. Pre-deposit waived

Summary

The Appellate Tribunal CESTAT, Mumbai granted waiver of pre-deposit and stay of recovery for a penalty imposed under Section 76 of the Finance Act, 1994. The appellant had paid the service tax with interest before the show-cause notice was issued, believing it could be paid after recovery from clients. Citing a Delhi High Court case, the Tribunal exempted the appellant from penal liability under Section 80 of the Finance Act, 1994.