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2021 (8) TMI 173 - AT - Service TaxPeriod of limitation - Relevant date - Renting of immovable properties - Demand with the statutory interest for the period 01.04.2012 to 30.06.2012 - recovery of service tax under section 73(1) of the Finance Act - HELD THAT - Section 73(1) of the Finance Act deals with recovery of service tax not levied or paid or short-levied or short-paid or erroneously refunded - section 73(1) was amended w.e.f. 2805.2012 and the period of one year from the relevant date was amended to eighteen months from the relevant date . There is no dispute that the relevant date in the present case is 25.11.2012. Prior to this date on 28.05.2012, section 73(1) of the Finance Act was amended and it was provided that the Central Excise Officer could issue a notice within eighteen months from the relevant date. The show cause notice was issued on 08.05.2014, which would be within eighteen months from 25.11.2012 - Commissioner (Appeals), therefore, committed no illegality in holding that the demand for the period 01.04.2012 to 30.06.2012 was within the statutory period of eighteen months from the relevant date. There is, therefore, no illegality in the impugned order - appeal dismissed - decided against appellant.
Issues:
1. Interpretation of service tax liability on renting of immovable properties. 2. Statutory period of limitation for raising service tax demand. 3. Application of Section 73(1) of the Finance Act pre and post-amendment. Interpretation of service tax liability on renting of immovable properties: The appellant, a government-established entity under The Rajasthan Agriculture Produce Markets Act, 1961, rented out properties within the market area and collected an allotment fee. The show cause notice alleged that these services fell under 'renting of immovable properties' taxable under the Finance Act from 01.06.2007. The dispute arose regarding the service tax liability for the period from 01.04.2012 to 30.06.2012. The Commissioner (Appeals) partially allowed the appeal, holding that services provided after 01.07.2012 were exempt under the Negative List specified in the Finance Act. However, services provided before that date attracted service tax, leading to the confirmation of demand with interest for the mentioned period. Statutory period of limitation for raising service tax demand: The appellant contended that the demand for the period 01.04.2012 to 28.05.2012 was time-barred as the show cause notice was issued on 08.05.2014, beyond the one-year limitation period from the due date of filing the return. The appellant argued that the amendment extending the limitation period to 18 months from 28.05.2012 could not revive an already time-barred claim. The Commissioner (Appeals) held that the demand for the mentioned period was within the statutory 18-month period from the relevant date of 25.11.2012, thus rejecting the limitation argument. Application of Section 73(1) of the Finance Act pre and post-amendment: Section 73(1) of the Finance Act deals with the recovery of service tax not levied or paid within a specified period. The section was amended with effect from 28.05.2012, extending the limitation period to 18 months from the relevant date. In this case, the show cause notice issued on 08.05.2014 fell within the extended limitation period from the relevant date of 25.11.2012. The Commissioner (Appeals) found no illegality in confirming the demand for the period 01.04.2012 to 30.06.2012 within the statutory limitation provided under the amended Section 73(1) of the Finance Act. In conclusion, the appeal was dismissed, upholding the Commissioner (Appeals) decision on the service tax liability, statutory period of limitation, and the application of Section 73(1) of the Finance Act.
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