2019 (9) TMI 119 - AT - Service Tax

Demand of service tax - renting of immovable property - appellant had taken a stand that said income was from renting of residential dwelling, which were not taxable - HELD THAT - Inasmuch as the issue relates to the production of evidence to support the assessee s stand, we are of the view that the appellant should be given another chance to produce the evidence, in support of their plea - the impugned order is set aside and matter is remanded for fresh decision. Appeal allowed by way of remand.

Summary

Issues:
- Confirmation of Service Tax liability under "renting of immovable property"
- Lack of evidence to support the appellant's claim regarding the nature of the rented properties
- Remand for fresh decision and opportunity to produce evidence

Confirmation of Service Tax Liability:
The Tribunal noted that Service Tax of ?9,48,480/- was confirmed against the appellant under the category of "renting of immovable property." The appellant had claimed that the income was from renting residential dwellings, which they believed were not taxable. However, the adjudicating authority rejected this claim due to the lack of evidence supporting the assertion that the properties were used solely for residential purposes. The Tribunal observed that without evidence, the appellant's contention was not sustainable and was thus rejected.

Lack of Evidence to Support Claim:
The key issue identified by the Tribunal was the absence of evidence to support the appellant's stand regarding the nature of the rented properties. The Tribunal emphasized the importance of producing evidence to substantiate the plea made by the appellant. Since the appellant failed to provide such evidence, the impugned order confirming the Service Tax liability was set aside, and the matter was remanded for a fresh decision. The Tribunal highlighted the necessity for the appellant to present evidence to support their case, specifically regarding the properties being used solely for residential purposes.

Remand for Fresh Decision:
In light of the lack of evidence presented by the appellant, the Tribunal decided to remand the matter for a fresh decision. The Tribunal clarified that all other issues, if any, were to be kept open for the adjudicating authority to decide. The appellant was granted another opportunity to produce evidence in support of their plea. The Tribunal allowed the appeal by way of remand, emphasizing the importance of providing evidence to substantiate the appellant's claims and ensuring a fair opportunity for the appellant to present their case effectively.