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TMI Blog2025 (3) TMI 744X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be termed as the service in public interest nor it is a mandatory or statutory functions of the Development Authority. Accordingly such activity of leasing do constitute a taxable service, in our opinion.'
As there are no merits in the submissions made by the appellant in respect of the levy of service tax on the "one time premium" or "salami" collected by them, the value of taxable services provided during each financial year for the period in the dispute would be more than the threshold exemption limit as provided by the Notification No 4/2007-ST dated 01.03.2007 as amended from time to time.
Conclusion - Both the one-time premium and the rent are subject to service tax under the renting of immovable property, and the exemption limit applies to the combined total of these amounts.
There are no merits in the appeal - appeal dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... rs by way of auction of Parking space on yearly basis in Loni Municipal Area. These Parking contractors use this land/parking space for providing public parking on collection of charges from individuals. In this manner the rented parking land is being utilized in furtherance of commerce or business. 2.3 After inquiries and examination it was observed that appellant had short paid service tax as detailed in table bellow : - Year Gross Amount Received Total Cum Tax Value (Rs.) S.Tax Rate % Less- Tax value (Rs.) S.Tax (Rs.) Edu Cess 2% (Rs.) SH Edu Cess 1% (Rs.) Total (Rs.) Fixed rent of shops) (Rs.) Lump- sum premiu m for shops (Rs.) Auction Money/ rent of parking space (Rs.) 2008-09 (Oct,08- March,0 9) 36216 0 1712500 1748716 12.36 1556351 186762 3735 1868 192365 2009-10 114432 1848000 3775000 5737432 10.30 5201661 520166 10403 5202 535771 2010-11 128918 0 4213000 4341918 10.30 3936462 393646 7873 3936 405456 2011-12 128918 2523000 4645000 7296918 10.30 6615519 661552 13231 6616 681399 2012-13 & April, 13 128918 2154242 5 5834140 27505483 12.36 2447978 2 293757 4 58751 29376 3025701 Total 537402 2591342 5 201796 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chhibber learned Counsel appearing for the appellant and Ms Chitra Srivastava, learned Authorised Representative appearing for the revenue. 3.2 Arguing for the appellant learned Counsel submits that- The appellant is a body established by the State of UP in accordance with Article 243P deriving its powers, authorities and responsibilities under Article 243W and collecting and expending under Article 243X of the Constitution of India. Hence, they were of the firm belief that there was no service tax liability on their part. As regard renting of shops, the issue being recurring in nature, the department raised demand for the period 2013-14 and 2014-15 on renting, which has been set aside by the Appellate Authority vide Order In Appeal No.GZB/EXCUS/000/APPL-MRT/153/2018-19 dated 19.06.2018 had held said activity taxable, but the total amount on account of renting received in year being much less than Rs.10 lakhs, the demand has been set aside by granting benefit of exemption under notification no.6/2005-ST as amended upto date. During the period of dispute the threshold limit as per the Notification No.4/2007 dated 1/3/2007, the said limit was Rs.8 lakhs. The appellant collect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given a specific finding on the plea of overlapping raised by the assessee. 30. It is left open to the appellant to raise all such legal as well as factual issues in respect of the second show cause notice dated 17th October, 2012 during remand de novo proceedings. The plea of the appellant that it is performing statutory duties and is a creation of a statute and therefore cannot be subjected to Service Tax does not appeal to us. Suffice is to mention that the Finance Act, 1994 makes no distinction between a statutory body i.e. a juristic person and an individual. 31. As far as the circular dated 23rd August, 2007 issued by the Government of India, which has been so heavily relied upon by the appellant is concerned, we may record that under Clause 032.01, it has been provided that the Prasar Bharati Corporation (Doordarshan and All India Radio), which has been constituted under the Prasar Bharati (Broadcasting Corporation of India) Act, 1990 is liable to pay Service Tax for broadcasting services. 32. Similarly under Clause 999.01 with regard to the sovereign/public duties/functions, it has been clarified that activities assigned to and performed by the sovereign/public ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal in case of Rajasthan State Industrial Development and Investment Corporation Ltd. [INTERIM ORDER NO‟s. 1/2025 & 1/2025 dated 27.01.2025 in Service Tax Appeal No 50553 of 2017 and Service Tax Appeal No. 89766 of 2013 (Mumbai Bench)] and Larger Bench has observed settled the issue stating as follows: "31. In Greater Noida Industrial Development Authority, this issue was examined in paragraph 10.1 of the judgment, which paragraph has been reproduced above. In paragraph 16 of the judgment, the Division Bench noticed that in Panbari Tea the Supreme Court drew a distinction between premium and rent, but then proceeded to hold that since the taxing event under section 65(105)(zzzz) of the Finance Act is "renting of immovable property", service tax would be leviable only on the element of rent and not on the value of "premium" or "salami". The Division Bench failed to notice that the definition of "renting of immovable property" includes "leasing‟, which under section 105 of the Transfer of Property Act includes both premium and periodical rent. 32. The Division Bench of the Tribunal in Kagal Nagar Parishad merely followed the earlier decision of the Tribunal in Greater N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Municipalities, subject to such conditions as may be specified therein, with respect to - (i) the preparation of plans for economic development and social justice; (ii) the performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule; (b) the Committees with such powers and authority as may be necessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule." The Twelfth Schedule of Article 243W [sic] reads as under :- "TWELFTH SCHEDULE (Article 243W) 1. Urban planning including town planning. 2. Regulation of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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