2014 (12) TMI 743 - AT - Service Tax

Waiver of pre deposit - Renting of immovable property service - Daily Market and Shop Rent - Held that - Demand of tax of ₹ 14,89,730/- under Daily Market and ₹ 56,67,524/- under Shop Rent are, prima facie, sustainable. Accordingly, we direct the applicant to predeposit ₹ 72,00,000 within a period of eight weeks and report compliance on 5.11.2014. Upon such deposit, predeposit of the balance dues stands waived and recovery thereof stayed during the pendency of the appeal. - Stay granted partly.

Summary

Issues: Tax demand under the category of renting of immovable property service for the period 2007-08 to 2011-12, applicability of tax on daily market and shop rent, directive to predeposit the tax amount.

Analysis:
1. Tax Demand Under Renting of Immovable Property Service:
The case involves a Municipal Corporation facing a tax demand of Rs. 1,00,66,725 under the category of renting of immovable property service for the period 2007-08 to 2011-12. The applicant contests that they have not rendered services under this category, presenting a statement showing collection amounts for different categories. The tribunal, upon perusing the statement, identifies tax amounts of Rs. 14,89,730 and Rs. 56,67,524 under daily market and shop rent, respectively, as prima facie payable. The Revenue argues citing a previous tribunal order and a Supreme Court decision, emphasizing the need for predeposit based on legal precedents.

2. Applicability of Tax on Daily Market and Shop Rent:
Upon considering submissions from both sides and reviewing the statement provided by the applicant's counsel, the tribunal finds the tax demands of Rs. 14,89,730 for Daily Market and Rs. 56,67,524 for Shop Rent to be prima facie sustainable. Consequently, the tribunal directs the applicant to predeposit Rs. 72,00,000 within eight weeks and report compliance by a specified date. It is further mentioned that upon such deposit, predeposit of the remaining dues will be waived, and recovery thereof stayed during the appeal process.

This detailed analysis of the judgment from the Appellate Tribunal CESTAT Chennai highlights the key issues of tax demand under the renting of immovable property service, the specific applicability of tax on daily market and shop rent, and the directive for predepositing the tax amount. The decision reflects a careful consideration of legal arguments, past precedents, and the specific circumstances of the case involving a Municipal Corporation under the Government of Tamil Nadu.