Appellate Tribunal grants waiver for service tax liability on property rent

The Appellate Tribunal CESTAT AHMEDABAD granted the appellant's application for waiver of pre-deposit concerning service tax liability on renting of immovable property service. The appellant had already deposited a significant portion of the confirmed demand, and the Tribunal deemed it sufficient to hear and dispose of the appeal. Recovery of the remaining amount was stayed pending appeal resolution, with instructions for verification of the payment made by the appellant.

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Issues: Service tax liability on renting of immovable property service, waiver of pre-deposit

In this judgment by the Appellate Tribunal CESTAT AHMEDABAD, the issue at hand pertains to the service tax liability concerning the renting of immovable property service provided by the appellant. The Tribunal notes that the Hon'ble Supreme Court, in the case of Home Solutions, had directed appellants to deposit 50% of the amount in cash and execute a surety bond for the remaining 50% while admitting appeals by assessees. As the issue is pending before the Supreme Court and the appellant has already deposited Rs.72.22 lakhs out of the confirmed demand of Rs.87.67 lakhs, the Tribunal deems the deposited amount sufficient to hear and dispose of the appeal. Consequently, the application for the waiver of pre-deposit of the remaining amounts is granted, and recovery is stayed until the appeal is resolved. The Tribunal instructs the ld. D.R. to verify with the lower authorities that the appellant has indeed paid Rs.72,22,472/- during the pendency of the issue, with a deadline for compliance set for 29.04.13. The judgment is pronounced in court by Mr. M.V. Ravindran.

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