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of <h1>Tribunal upholds service tax demand for 2008-09, exempts penalty</h1> The tribunal upheld a demand of Rs. 8,303 plus interest towards service tax for the period from April 2008 to September 2009, while setting aside the ... SSI Exemption - Renting of Immovable Property Service - Notification No. 6/2005-S.T. as amended by Notification No. 8/2008 dated 1.3.2008 - Held that:- during the year 2007-08 aggregate turnover of previous year to be eligible for SSI benefit should not be more than ₹ 10 lakhs and not ₹ 8 lakhs as held by the Commissioner. Since the appellant has not exceeded ₹ 10 lakhs turnover during the year 2007-08, the appellant is eligible for the benefit of SSI exemption during the year 2007-08. In the year 2007-08, the gross amount received by the appellant was ₹ 9,13,700 - appellant does not deserve to be penalized at all. Accordingly, we uphold the demand of ₹ 8,303 plus interest towards service tax. Demand for balance amount and penalty are set aside. - Decided in favour of assessee. Issues:1. Demand of service tax for the period from April 2008 to September 2009.2. Interpretation of Notification No. 6/2005-S.T. and Notification No. 8/2008.3. Eligibility for Small Scale Industry (SSI) exemption.4. Imposition of penalty.Analysis:1. The appellant was demanded service tax for the period from April 2008 to September 2009, culminating in confirmation of demand and penalty imposition. The appellant had paid the entire service tax with interest for the period from 1.4.2009 to 30.9.2009. After detailed hearings, the tribunal decided to waive the pre-deposit requirement and proceeded with the final decision on the appeal.2. The appellant, registered as a provider of 'Renting of Immovable Property Service,' had discontinued paying service tax after March 2008, leading to proceedings against them. The issue revolved around the interpretation of Notification No. 6/2005-S.T. and Notification No. 8/2008 regarding the eligibility for Small Scale Industry (SSI) exemption. The tribunal noted that the appellant was eligible for the SSI exemption for the year 2007-08 as their turnover did not exceed Rs. 10 lakhs, contrary to the Commissioner's view based on a turnover limit of Rs. 8 lakhs.3. The tribunal emphasized that the appellant's gross amount received in the year 2007-08 was Rs. 9,13,700, making them eligible for the SSI exemption. The excess amount of Rs. 96,440 was agreed to be discharged by the appellant, resulting in a determined liability of Rs. 8,303 plus interest. The tribunal considered the appellant's compliance and the interpretation of the notification, concluding that the appellant did not deserve any penalty. Therefore, the demand for the balance amount and penalty were set aside.4. In conclusion, the appeal and stay application were disposed of with the tribunal upholding a demand of Rs. 8,303 plus interest towards service tax while setting aside the demand for the balance amount and penalty. The tribunal's decision was based on the interpretation of the notification, the appellant's compliance, and the circumstances of the case.
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