2024 (6) TMI 250 - AT - Service Tax

Violation of principles of natural justice - Commissioner has not appreciated the calculation provided by the appellant during adjudication - Levy of service tax - rental income received by them for renting of vacant land, prior to 01.07.2010 - renting of residential buildings under the category of Renting of Immovable Property Service - HELD THAT - It is found that appellant have provided all the calculation of the service tax paid by them however, the learned Commissioner has not considered the said vital details provided by the appellant and passed the order by confirming a huge demand whereas, as per the appellant s claim they have paid service tax in excess. In these circumstances, the Adjudicating Authority needs to reconsider the case on all the points particularly the recalculation of service tax paid by the appellant along with supporting documents. The impugned order is set aside - matter remanded to the Adjudicating Authority for passing a fresh order on all the points.

Summary

Issues involved: Whether the Appellant is liable to pay Service Tax on rental income received for vacant land and residential buildings u/s 65(105)(zzzz) of the Finance Act, 1994.

Facts:
- Appellant, M/s Kandla Port Trust, holding Service Tax Registration under "Port Service" and "Renting of Immovable" categories.
- Department alleged non-payment of Service Tax on rent from leasing vacant lands and residential buildings.
- Show cause notice proposed recovery of Rs. 81,68,976 under "Renting of Immovable Property" as per Section 65(105)(zzzz) of the Finance Act, 1994.
- Appellant responded, providing revised figures from audited accounts, claiming certain amounts were not taxable pre-01.07.2010.
- Commissioner's Order-in-Original confirmed demand, interest, penalty, and late fees.
- Appeal filed, matter remanded to Adjudicating Authority for reconsideration.
- Appellant's submissions not considered, resulting in confirmation of demand in subsequent order.
- Appellant claimed excess payment of Service Tax not considered by the Commissioner.

Judgement:
- Appellant's calculations of Service Tax paid were not considered by the Commissioner.
- Appellant claimed to have paid in excess, hence no further tax liability.
- Adjudicating Authority directed to reconsider the case, particularly the recalculated Service Tax paid by the Appellant.
- Impugned order set aside, matter remanded for fresh decision on all points.