2020 (3) TMI 258 - AT - Service Tax

Levy of Service tax - renting of immovable property - It is the claim of the appellant that by virtue of N/N. 1/2018 dated 30th November 2018, the appellant would not be required to discharge service tax during the said period - period 2012-13 to 2016-17. HELD THAT - The Notification was issued after the impugned order was passed by the adjudicating authority. Therefore requires to examine its applicability to the facts and circumstances of the present case. Matter remanded to the adjudicating authority to examine the applicability of the aforesaid notification and pass an appropriate order after giving an opportunity of hearing to the appellant - appeal allowed by way of remand.

Summary

Issues:
1. Early hearing of the appeal based on Notification No 1/2018-ST dated 30th November 2018.
2. Levy of service tax on 'renting of immovable property' during the period 2012-13 to 2016-17.
3. Applicability of Notification No 1/2018 post the impugned order.

Analysis:
1. The appellant filed a miscellaneous application seeking early hearing of the appeal due to Notification No 1/2018-ST, which exempted the appellant from discharging service tax during the relevant period. The Bench suggested proceeding with the appeal itself, which was agreed upon by both parties. The issue revolved around the levy of service tax on 'renting of immovable property' during the period in question.

2. The appellant claimed exemption from service tax based on Notification No 1/2018 dated 30th November 2018. The notification highlighted the non-levy of service tax on services related to the granting of 'right of way' by 'local authorities' during the specified period. The Tribunal found that this notification was issued post the impugned order, necessitating a re-examination of its applicability to the case. As a result, the matter was remanded to the adjudicating authority for a fresh assessment considering the notification and providing the appellant with a hearing opportunity.

3. The Tribunal acknowledged the issuance of Notification No 1/2018 after the initial order was passed. Therefore, the applicability of this notification to the case required scrutiny. Consequently, the Tribunal remanded the matter to the adjudicating authority to evaluate the relevance of the notification and issue a new order after hearing the appellant. The appeal was allowed by way of remand, and the miscellaneous application was disposed of accordingly.