Tribunal grants stay petition for service tax waiver, directs reconsideration on property tax impact

The Tribunal allowed the stay petition for waiver of pre-deposit of service tax, interest, and penalty. The appellant's liability to pay service tax on rent received for immovable property was confirmed by lower authorities. The Tribunal directed reconsideration by the adjudicating authority, emphasizing a retrospective amendment to the Finance Act, 2012, and the application of a notification regarding property tax in calculating service tax liability. The matter was remitted for further consideration, ensuring adherence to principles of natural justice. The appeal was allowed for remand, maintaining neutrality on the case's merits.

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Issues involved: Stay petition for waiver of pre-deposit of service tax amount, interest, and penalty; retrospective amendment to Section 65 of Finance Act, 2012; applicability of Notification No. 24/2007-ST dated 22.05.2007; calculation of service tax liability excluding property tax paid by the appellant.

The judgment pertains to a stay petition seeking the waiver of pre-deposit of service tax amount, interest, and penalty. The amounts in question were confirmed by the adjudicating authority and upheld by the first appellate authority, holding the appellant liable to pay service tax on the rent received for renting out immovable property. The Tribunal acknowledged the narrow compass of the issue and allowed the stay petition for waiver of pre-deposit, proceeding to take up the appeal for disposal. The appellant's Chartered Accountant argued for the retrospective amendment to Section 65 of the Finance Act, 2012, which would allow payment of service tax along with interest, granting immunity from penalty. Additionally, the appellant's representative contended that the lower authorities failed to consider the benefit of Notification No. 24/2007-ST regarding property tax paid by the appellant. The Tribunal directed the adjudicating authority to reexamine the issue, considering the retrospective amendment and the application of the notification in calculating the gross value for service tax liability, excluding property tax paid by the appellant, based on evidence provided. The Tribunal set aside the impugned order and remitted the matter back to the adjudicating authority for reconsideration, emphasizing adherence to the principles of natural justice. The appeal was allowed for remand to the adjudicating authority, maintaining neutrality on the case's merits.

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