2012 (7) TMI 109 - AT - Service Tax

Renting out of immovable property - demand - assessee contended correct payment of service tax on ground of retrospective amendment to Section 65 of Finance Act, 2012 and extension of benefit of Notification No. 24/2007-ST in respect of property tax paid - Held that - Issue needs to be considered by the adjudicating authority from the point of view of retrospective amendment and also for the extension of benefit of Notification No. 24/2007-ST, as regards the calculation of the gross value excluding the property tax paid by the appellant. Appeal is allowed by way of remand to the adjudicating authority.

Summary

Issues involved: Stay petition for waiver of pre-deposit of service tax amount, interest, and penalty; retrospective amendment to Section 65 of Finance Act, 2012; applicability of Notification No. 24/2007-ST dated 22.05.2007; calculation of service tax liability excluding property tax paid by the appellant.

The judgment pertains to a stay petition seeking the waiver of pre-deposit of service tax amount, interest, and penalty. The amounts in question were confirmed by the adjudicating authority and upheld by the first appellate authority, holding the appellant liable to pay service tax on the rent received for renting out immovable property. The Tribunal acknowledged the narrow compass of the issue and allowed the stay petition for waiver of pre-deposit, proceeding to take up the appeal for disposal. The appellant's Chartered Accountant argued for the retrospective amendment to Section 65 of the Finance Act, 2012, which would allow payment of service tax along with interest, granting immunity from penalty. Additionally, the appellant's representative contended that the lower authorities failed to consider the benefit of Notification No. 24/2007-ST regarding property tax paid by the appellant. The Tribunal directed the adjudicating authority to reexamine the issue, considering the retrospective amendment and the application of the notification in calculating the gross value for service tax liability, excluding property tax paid by the appellant, based on evidence provided. The Tribunal set aside the impugned order and remitted the matter back to the adjudicating authority for reconsideration, emphasizing adherence to the principles of natural justice. The appeal was allowed for remand to the adjudicating authority, maintaining neutrality on the case's merits.

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