2019 (6) TMI 1618

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..... ill available to the appellant considering that the tax liability under renting of immovable service was subject matter of various disputes, amendments, including retrospective amendment. As such, the penalty imposed on this service is waived invoking provisions of Section 80. The penalty imposed in the impugned order is set aside - Appeal allowed - decided in favor of appellant.
SHRI P.K.CHOUDHARY, MEMBER (JUDICIAL) Shri Ankit Kanodia, C. A. for the Appellant (s) Shri D. Haldar, A. C. (AR) for the Respondent(s) ORDER The facts of the case in brief are that the appellant is engaged in the hospitality industry and is a five star rated hotel under the brand name of Hyatt Regency Kolkata and is thus registered with the service tax depar .....

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..... e amount of service tax along with applicable interest was deposited and communicated to the Department along with challan copies. He further submits that there was no case for issuance of show-cause as there was no suppression on the part of the appellant. It is his submission that the appellant assessee was under the bonafide belief that there was no service tax liability on the services of renting of immovable property as the same was under dispute until the judgment of the Hon'ble Delhi High Court in Home Solutions Retail Ltd. v. Union of India - 2011 (21) S.T.R. 109 (Del.) by which amendment was brought in the statute. Therefore, they never disputed the liability and immediately paid the entire amount of service tax as calculated along .....

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..... dments, including retrospective amendment. As such, the penalty imposed on this service is waived invoking provisions of Section 80." Also, it was held by the Hon'ble CESTAT in the case of SREE KANYACOMBINES Versus COMMISSIONER OF C. EX., VISAKHAPATNAM-II reported in 2016 (43) S.T.R. 604 (Tri. - Hyd.)as - "5. I have heard the rival submissions. Undeniably the issue whether activity of renting of immovable property is subject to levy of service tax was a contentious one. In the present case, the value of taxable service of 'sale of space or time for advertisement' for the respective period is less than the threshold of exemption. The contention of the appellant that they bonafide believed that their services would not be taxable as rentin .....

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