2024 (2) TMI 1253 - AT - Service Tax

Appellant Exempt from Service Tax Under Finance Act 1994; Appeal Granted Relief Based on Circular and Retrospective Exemption.

The Tribunal determined that the appellant was not liable for service tax under the Finance Act, 1994, for the period from 1.4.2010 to 31.3.2016. For the ... Non-payment of service tax - Renting of Immovable Property Service - appellant did not discharge the service tax liability on the above service right from 2010 onwards - HELD THAT:- The matter stands clarified by the Boards Circular dated 24.5.2010 for the period 1.4.2010 to 30.6.2012 and Notification No. 1/2018-ST dated 30.11.2018 for the period 1.7.2012 to 30.6.2017, which covers the period of demand - no service tax was payable by the Appellant by way of letting the road sides to cable TV network firms and telephone / mobile network operators for laying optical fibre cables. The impugned order hence merits to be set aside. The impugned order set aside - appeal disposed off. Issues involved: The issue involves the liability of service tax u/s 65(105)(90a) of the Finance Act, 1994 on the appellant for providing 'Renting of Immovable Property Service' by letting road sides to cable TV network firms and telephone/mobile network operators for laying optical fibre cables.Summary of the Judgment:Issue 1: Liability of service tax for the period 1.4.2010 to 30.6.2012The appellant argued that no specific statutory provision existed to levy service tax on 'Annual Track Rent' during the positive service tax levy regime from 1.4.2010 to 30.6.2012. The appellant referred to Circular F No 332/5/2010-TRU, dated 24.5.2010, which clarified that laying cables alongside roads is not a taxable service. The Tribunal held that no service tax was payable by the appellant for this period, as confirmed by the circular.Issue 2: Liability of service tax for the period 1.7.2012 to 31.3.2016The appellant contended that a retrospective exemption was issued by the Government regarding the non-levy of service tax on services involving the granting of 'right of way' by 'local authorities' from 1.7.2012 to 30.6.2017. The Tribunal found that no service tax was payable by the appellant for letting road sides during this period as well, based on Notification No. 1/2018-ST dated 30.11.2018.Conclusion:The Tribunal set aside the impugned order, ruling that no service tax was payable by the appellant for letting road sides to cable TV network firms and telephone/mobile network operators for laying optical fibre cables. The appellant was granted consequential relief as per law, and the appeal was disposed of accordingly.