2017 (8) TMI 704 - AT - Service Tax

Penalty - Section 80A - Consideration for renting of immovable property during the period June 2007 to March 2009 - Held that - Section 80A has specifically provides that, if service tax liability along with interest is discharged on the renting of immovable property services within six months from the assent of bill by the President, then the penal provisions need not be invoked - It is on record that the appellant has discharged service tax liability and interest thereof before assent of the Finance Bill 2012 by the President of India. In view of this, the provisions of Section 80A are applicable and accordingly penalties imposed on the appellant are liable to be set aside - appeal allowed - decided in favor of appellant.

Summary

Issues: Service tax liability on renting of immovable property, applicability of Section 80A, penalties imposed

In this judgment by the Appellate Tribunal CESTAT Mumbai, the issue revolved around the service tax liability on an amount received for renting immovable property during a specific period. The Tribunal considered the provisions of Section 80(2) of the Finance Act, 1994, in relation to service tax liability under Section 65(105) (zzzz). It was noted that if the service tax liability, along with interest, is paid within six months from the date of the Finance Act, 2012 receiving assent from the President, penalties would not be imposed. The appellant's main contention was to set aside the penalty imposed. The Tribunal referred to Section 80A, which states that if the service tax liability and interest on renting of immovable property services are discharged within six months of the President's assent to the Finance Bill 2012, penal provisions need not be invoked. As the appellant had indeed paid the service tax liability and interest before the President's assent to the Finance Bill 2012, the Tribunal held that Section 80A applied, and consequently, the penalties imposed on the appellant were set aside.

The Tribunal, after considering the above points, set aside the penalties imposed on the appellant and disposed of the appeal accordingly. The decision was pronounced in court, bringing an end to the legal proceedings in this matter.