Appeal allowed on service tax demand for land lease; exemption granted under Section 104.

The appeal was allowed regarding the demand of service tax on the lump-sum amount received for letting vacant land for industrial purposes. The appellant was granted exemption under Section 104 of the Finance Act, 1994. However, issues related to service tax on rent collected on vacant land/plot, renting of infrastructural facilities, and Centage charges were remanded to the Original authority for reevaluation and recalculation of service tax without penalties beyond specific dates.

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Issues:
1. Demand of service tax on lump-sum amount received for letting vacant land.
2. Service tax on rent collected on vacant land/plot.
3. Service tax on renting of infrastructural facilities.
4. Demand of service tax on Centage charges.

Analysis:

Issue (a) - Demand of service tax on lump-sum amount received for letting vacant land:
- The appellant collected lump-sum amounts for letting vacant land for industrial purposes.
- Service tax was confirmed on the lump-sum amount collected.
- Appellant claimed benefit under Section 104 of Finance Act, 1994, which exempts one-time upfront amounts collected by State Government Industrial Development Corporation for industrial plots leased for over 30 years.
- Tribunal found that the appellant met the requirements of Section 104 and set aside the demand of service tax and penalty.

Issue (b) - Service tax on rent collected on vacant land/plot:
- Service tax demand was confirmed on rent collected on vacant land allotted as industrial plots.
- Appellant argued that due to litigation and retrospective amendments, extended limitation period was not applicable.
- Tribunal held that extended limitation applied for part of the period and remanded the matter to recalculate service tax without imposing penalty after a certain date.

Issue (c) - Service tax on renting of infrastructural facilities:
- Service tax was confirmed on renting various immovable properties.
- Appellant argued that certain properties were excluded from the levy based on the law.
- Tribunal remanded the matter to recalculate service tax, extending cum duty benefit and not imposing penalty for a specific period.

Issue (d) - Demand of service tax on Centage charges:
- Service tax was confirmed on Centage charges received for supervision over construction work.
- Appellant contended that the activity was a service to self as it involved supervision of work funded by the State Government.
- Tribunal remanded the matter to determine if the construction work was wholly sponsored by the Government to decide on the levy of service tax.

Conclusion:
- The appeal was allowed on issue (a), while issues (b), (c), and (d) were remanded to the Original authority for further examination and calculation of service tax without imposing penalties beyond specific dates.

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