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TMI Blog2023 (4) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... firmed to the extent that the demand of service tax has been upheld with interest but penalty imposed has been set aside. 2. The appellant is engaged in the manufacture of instrumentation/power cable and during the period of dispute from July 2012 to August 2014, the appellant paid an amount of Rs. 2,73,01,852/- towards rent to Naveen Sawhney and D.K. Prashar for the premises let out by them to the appellant. The premises were used by the appellant for its Registered Office/Corporate Office. Naveen Sawhney and D.K. Prashar also happen to be the Directors of the appellant. In the invoices raised by the landlords to the appellant in respect of the properties let out, service tax aggregating to Rs. 27,14,665/- was also charged and deposited a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y taken on lease; (ii) As the rent was collected by Naveen Sawhney and D.K. Prashar as the owners/landlord of the premises, the service tax was included in the invoices raised on the appellant and was also deposited; and (iii) In any view of the matter, the extended period of limitation could not have been invoked in the facts and circumstance of the case. 6. Shri Rajeev Kapoor and Shri P.K. Sinha, learned authroised representatives for the department, however, supported the impugned order and submitted that the appellant was required to pay service tax on a reverse charge mechanism since rent was being collected by the Directors of the appellant. 7. The submissions advanced by the learned chartered accountant appearing for the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... zette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 849(E), dated the 31st December, 2004, except as respects things done or omitted to be done before such supersession, the Central Government hereby notifies the following taxable services and the extent of service tax payable thereon by the person liable to pay service tax for the purposes of the said sub-section, namely:- I. The taxable services,- A) (i) ------------- (ii) ------------- (iva) provided or agreed to be provided by a director of a company to the said company" 10. The extent of service tax payable thereon by the person who provides the service and the person who receives the service for the taxable services specified at paragraph (I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rge mechanism and therefore, the service tax is payable by the appellant." 13. The Commissioner (Appeals) assumed that Naveen Sawhney and D.K. Prashar are providing service of renting of immovable property as Directors of the appellant, whereas they are providing the said service in their individual capacity as owners of the premises and not as Directors of the appellant. 14. The appellant, in such a situation, could not have been asked to pay service tax on a reverse charge mechanism. What needs to be further noticed is that service tax had been deposited on the rent received by Naveen Sawhney and D.K. Prashar from the appellant. 15. Thus, for all the reasons stated above, the order dated 07.05.2018 passed by the Commissioner (Appeals) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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