2019 (11) TMI 790

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..... equipment and machinery relating to generation, transmission, distribution, conservation, utilisation etc. of electrical energy and development of renewable sources of energy having their works set up near the city of Bhopal. As appellant's factory runs 24 hours, in shift, the appellant, to facilitate its large number of workman and managerial staff, has set up a industrial township adjacent to the factory. The appellant have around 22,000 employees and the township consist of 10,000 houses. Further, to facilitate the employees and their children the appellant have also created the facilities like schools, market place etc. Further, the appellant have also facilitated use of some of the premises to the cultural and religious organisation, .....

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..... e tax. On being so pointed out by the Department, the appellant deposited the service tax on the lease rent from the educational institution(s) and cultural organisation(s). The bone of contention remain with respect to conservation charges, received alongwith the lease rent, under separate head which are for use by the 'town administration department' in providing the municipal services in the industrial township of BHEL, set up by the appellant company. It appeared to Revenue that the conservancy charges are part of the lease rent and is taxable to service tax. Accordingly, show cause notice dated 08.09.2017 was issued invoking the extended period of limitation demanding the service tax on the lease rent and conservation charges with furt .....

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..... enalty imposed. 6. Learned Authorised Representative reiterated on the impugned order and states that once the tax has been confirmed, the penalty is exigible. 7. Having considered the rival contentions and the facts on record, I find that there is no case of having collected the service tax and not paid. Further, it is evident that appellant is a Public Sector Undertaking and maintained the proper record of their transactions. Further, the levy of service tax on lease rent from education institution was wholly exempt. It was only by a subsequent modification of the mega exemption notification (w.e.f. 11.07.2014) the service tax became chargeable on the said lease rent. On this score also it is evident that there is no malafide on the pa .....

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