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TMI Blog2025 (4) TMI 968X X X X Extracts X X X X X X X X Extracts X X X X ..... y' service rendered during the period April 2008 to March 2009 along with demand of interest at appropriate rates and equivalent penalty imposed. 2. The facts are that the appellants who are manufacturers of Electrical Steel Transformer laminations had registered as a service provider for providing taxable service of "renting of immovable property" with effect from 28-05-2009. During verification of their accounts, it was noticed that the appellants had leased out their premises to M/s. Anmod Stamping Pvt Ltd on rent during the period 2008-09 collecting a sum of Rs.1,02,00,000/-. The Department being of the view that this amounted to providing taxable service of "renting of immovable property" advised the appellant vide letters dated 21.11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 that the scope of such levy was suitably amended "retrospectively" to validate the demand of such tax already raised and even the TRU clarification bearing DOF No.334/1/2010-TRU dated 26.02.2010 at para 9.2 clarifies that the retrospective amendment was to clarify the legislative intent and to also bring "certainty" in tax liability of renting of immovable property, thereby meaning that there was confusing during the material period and hence the necessity of retrospective amendment. He submitted that in identical circumstances the Tribunal has in various decisions held the demand of service tax under renting of immovable property services to be time barred in light of the retrospective amendment made in law and relied on the decisions i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia Ltd, 2009 (14) STR 433 (Del) held that Section 65(105)(zzzz) does not in terms entail that the renting out of immovable property for use in the course or furtherance of business of commerce would by itself constitute a taxable service and be exigible to service tax under the said Act. The CBEC vide Letter D.O. F. No. 334/3/2010-TRU, dated 1-7-2010 on the subject of changes proposed in service tax law and procedure in Union Budget 2010-11, has at para 9.2 stated that "9.2 In order to clarify the legislative intent and also bring in certainty in tax liability the relevant definition of taxable service is being amended to clarify that the activity of renting of immovable property per se would also constitute a taxable service under the rele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Products Ltd v CCE, Meerut-II, 2013 (31) STR 367 (Tri-Del), on an identical issue where demand of service tax was made on renting of immovable property services for the period 2007-2008 to 2008-09, the Tribunal has held in para 6 as under: "6. There is no dispute that the activity of the appellant was renting of immovable property. Though "service in relation to renting of immovable property" had been brought within the service tax net w.e.f. 1-6-2007 by introducing Section 65(105)(zzzz), the validity of this levy had been challenged before the Hon'ble Delhi High Court and Hon'ble Delhi High Court vide judgment dated 18th April, 2009 in the case of Home Solution Retail India (supra) held that mere renting of immovable property by itse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Finance Act, 1994. Thus, the entire service tax demand is time barred. The impugned order is, therefore, not sustainable. The same is set aside. The appeal is allowed." 9. We note that similar line of reasoning has been subsequently adopted in the decisions in M/s. Utkal Builders Limited, 2023 (9) TMI 1285-CESTAT KOLKATA, M/s. Aditya Homes (P) Ltd, 2019 (9)TMI 793- CESTAT Hyd, Infinity Infotech Parks Ltd, 2014 (36) STR 37 (Cal), and Venus laminations P Ltd, 2018 (3) TMI 1002- CESTAT Ahmedabad. 10. In view of the discussions and findings above and in the light of the aforementioned decisions of the Tribunal, we find that the demands of duty, appropriate interest and penalties imposed by the original authority as upheld by the learned appel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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