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TMI Blog2019 (2) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... f audit of accounts, it was noticed that they did not pay appropriate service tax on the rent received from the property situated at Delhi and Mumbai for the different periods. Show cause notice was issued proposing to demand service tax along with interest and also for imposing penalties. After due process of law, the original authority confirmed the demand of Rs. 1,97,75,319/- along with interest and also imposed penalty of Rs. 19,77,532/- under section 76(1) of Finance Act, 1994. Aggrieved, the appellant is now before the Tribunal. 3. On behalf of the appellant, ld. counsel Ms. Radhika Chandrasekar appeared and argued the matter. She submitted that the appellant is engaged in the business of publishing magazines and has commercial premi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e value. If such amount is deducted, the tax liability would be reduced. She therefore prayed that the matter may be remanded to the adjudicating authority for taking into consideration the payment of property tax as well as the rent received in advance from tenants from the total taxable value. 4. The ld. counsel pleaded for waiver of penalty. She submitted that during the disputed period, the issue whether Renting of Immovable Property is subject to levy of service tax was highly contentious. There were litigations pending before various High Courts. In the case of Home Solutions Retails India Ltd. Vs. Union of India - 2009 (158) ELT 722, the Hon'ble Delhi High Court had held that levy cannot sustain. Later by amendment brought forth to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r requantifying the tax liability after giving the appellant the benefit of the property tax paid by them as well as the rent received in advance from tenants if any. So Ordered. 8. The ld. counsel has argued to set aside the penalties. Undisputedly, during the relevant period, the issue whether Renting of Immovable Property Service is subject to levy of service tax was highly contentious. There were litigations pending before various High Courts. An amendment was brought forth in 2010 having retrospective effect for the levy. Sub-section (2) to Section 80 provided that there would be waiver of penalty if the assessee paid the service tax along with interest within a prescribed time. All these would go to show that there was confusion as t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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