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2023 (9) TMI 1285 - AT - Service TaxSCN issued by invoking extended period of limitation - time limitation - levy of service tax on renting immovable property came into effect by way of amendment in the Finance Act, 2010 retrospectively w.e.f. 01.06.2007 - HELD THAT - The facts are not in dispute that the appellant is providing renting immovable property service w.e.f. 01.06.2007 and at that time, the wires of levy of service tax was challenged before the Hon ble Delhi High Court and it was held that the levy of service tax under renting of immovable property is ultra vires. Thereafter, by way of Section 77 of the Finance Act, 2010, the amendment was brought in and the levy of service tax became on renting of immovable property and came retrospectively w.e.f. 01.06.2007. In that circumstances, the show-cause notice issued to the appellant by invoking extended period limitation is not sustainable as held by this Tribunal in the case of JINDAL VEGETABLE PRODUCTS LTD. VERSUS CCE 2013 (3) TMI 56 - CESTAT, NEW DELHI . The show-cause notice issued to the appellant is barred by limitation as the same has been issued by extended period of limitation. Therefore, no demand is sustainable against the appellant - Appeal allowed.
Issues involved:
The judgment involves the confirmation of service tax demand against the appellant for the period from 01.06.2007 to 31.03.2010 under the category of "renting of immovable property" service. The main issue revolves around the invocation of extended period of limitation for issuing the show-cause notice to the appellant. Issue 1: Invocation of extended period of limitation for show-cause notice The appellant rented out their premises to a company, and the levy of service tax on renting immovable property came into effect retrospectively from 01.06.2007. A show-cause notice was issued to the appellant on 10.10.2011 invoking the extended period of limitation. The appellant argued that the extended period of limitation is not invokable due to the retrospective nature of the levy. The Tribunal referred to a previous case where it was held that during a period of dispute and uncertainty regarding the levy of service tax, the extended period of limitation cannot be invoked. The Tribunal concluded that the show-cause notice issued to the appellant was barred by limitation, and no demand is sustainable against the appellant. Therefore, the impugned order was set aside, and the appeal was allowed with consequential relief. Conclusion: The judgment by the Appellate Tribunal CESTAT KOLKATA dealt with the confirmation of service tax demand against the appellant for renting immovable property service. The key issue was the invocation of extended period of limitation for issuing the show-cause notice, which was found to be not sustainable due to the retrospective nature of the levy. The Tribunal set aside the impugned order and allowed the appeal in favor of the appellant.
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