Tribunal allows appeal, penalties removed, matter remanded for tax re-determination. Statutory body exempt from taxable services.

The appeal was allowed in part by the Tribunal, with penalties deleted and the matter remanded for re-determination of service tax payable on a cum duty basis. The appellant, a statutory body, successfully argued against the dismissal of their appeal as time-barred and for the condonation of delay in filing the appeal. The Tribunal held that the appellant's activities as a statutory body did not constitute taxable services under relevant statutes, setting aside the impugned order and directing re-determination of service tax payable for the normal period.

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Issues:
1. Appeal against dismissal as time-barred
2. Taxability of services under Renting of Immovable Property
3. Applicability of service tax on a statutory body
4. Calculation of duty on a cum duty basis
5. Condonation of delay in filing appeal

Issue 1: Appeal against dismissal as time-barred
The appellant, a statutory body under the UP Krishi Utpadan Mandi Adhiniyam, appealed against the dismissal of their appeal as time-barred by the learned Commissioner (Appeals). The appeal was dismissed due to being filed beyond the statutory period of 60 days + 30 days allowed for condonation.

Issue 2: Taxability of services under Renting of Immovable Property
The revenue found that the appellant provided taxable services under Renting of Immovable Property to various clients, evading service tax from 01/06/2007 to March 2012. The appellant did not register or file returns during the extended period. The demand was raised for Rs. 13,02,072/- towards tax Education-Cess, and penalties were proposed under Sections 76, 77, and 78 of the Act.

Issue 3: Applicability of service tax on a statutory body
The appellant contended that being a statutory body under the State Act, their activities were in the public interest and mandatory under relevant statutes. Citing CBEC Circular No. 89/7/2006 ST, they argued that activities performed by a sovereign/public authority under law did not constitute taxable services. The Additional Commissioner confirmed the demand and imposed penalties.

Issue 4: Calculation of duty on a cum duty basis
The Tribunal referred to a previous order involving a similar appellant, also a statutory body, where the delay in filing the appeal was condoned, and penalties were deleted. Relying on this precedent, the Tribunal allowed the current appeal in part, holding that there was no contumacious conduct, and the extended period of limitation was not applicable. The matter was remanded for re-determination of the service tax payable on a cum duty basis.

Issue 5: Condonation of delay in filing appeal
The Tribunal allowed the appeal in part, noting no suppression of facts by the appellant, a statutory body. The impugned order was set aside, and the matter was remanded for re-determination of service tax payable for the normal period. All penalties were deleted, and the appellant was directed to appear before the adjudicating authority for a reasoned order within 90 days. The appeal was allowed in part, and the stay application was disposed of.

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