2018 (3) TMI 551 - AT - Service Tax

Renting of immovable property service - non-payment of service tax - Finance Bill, 2017 inserted a new Section 104 retrospectively exempting from service tax the services rendered by State Government Industrial Development Corporation - whether the said exemption would be eligible for appellant or not? - Held that - the matter requires to be remanded to the adjudicating authority as to the application of section104, newly introduced by the Finance Bill 2017 - appeal allowed by wya of remand.

Summary

Issues:
1. Change of cause title from Commissioner of Service Tax to Commissioner of GST & Central Excise
2. Applicability of retrospective exemption under Section 104 of the Finance Act, 1994
3. Discharge of service tax liability for renting of immovable property service
4. Remand of the matter to the adjudicating authority for reconsideration

Issue 1: Change of Cause Title
The Revenue filed a miscellaneous application seeking a change of cause title from Commissioner of Service Tax to The Commissioner of GST & Central Excise, Chennai North Commissionerate due to the introduction of GST and change in jurisdiction. The Tribunal allowed the application and directed the Department to amend the cause title accordingly.

Issue 2: Applicability of Retrospective Exemption
The appellants, a corporation aiding industrial development, argued that they were exempt from service tax under Section 104 of the Finance Act, 1994, retrospectively. They contended that the demand for service tax was unsustainable post the retrospective exemption. The Tribunal noted the details of the appeals related to various services provided by the appellants and found merit in the argument. Therefore, the matter was remanded to the adjudicating authority for further consideration based on the retrospective amendment introduced by the Finance Bill 2017.

Issue 3: Discharge of Service Tax Liability
The appellants obtained service tax registration for renting of immovable property service but were alleged to have not discharged their service tax liability under various categories. After adjudication, demands, interest, and penalties were confirmed. The appellants argued for exemption based on the retrospective amendment introduced by the Finance Bill 2017. The Tribunal considered this argument and remanded the matter for reconsideration by the adjudicating authority.

Issue 4: Remand of the Matter
After hearing both sides and considering the arguments regarding the retrospective exemption under Section 104, the Tribunal set aside the impugned order and remanded the appeals to the adjudicating authority for further proceedings based on the discussions held during the hearing.

In conclusion, the Tribunal allowed the change of cause title, considered the applicability of the retrospective exemption under Section 104, and remanded the matter for reconsideration by the adjudicating authority. The decision was based on the arguments presented by the appellants regarding their service tax liability and the retrospective exemption provided by the Finance Bill 2017.