TaxTMI 
TaxTMI 
2014 (12) TMI 1096
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....that renting of immovable property was brought under service tax net with effect from 01.06.2007 under Clause (90a) of Section 65 of the Finance Act, 1994. Finance Act, 2010 has amended the definition of taxable service given in Section 65 (105)(zzzz) of the Act to provide explicitly that the activity of "renting" itself is a taxable service. The amendment has been given retrospective effect from 01.06.2007 itself, i.e., the date from which the service tax was levied for the first time on this activity. Hence a show cause notice dated 22.10.2012 was issued to the appellant proposing to demand service tax with interest and penalty. The appellant submitted its reply dated 30.12.2012 contending that the lease were entered into long before the ....
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.... a penalty of Rs. 5000/- on M/s.Tiruppatur Municipality, under Section 77 of the Finance Act, 1994." 3. Aggrieved by the order of the Adjudicating Authority, the appellant preferred an appeal before the Tribunal along with an application for waiver of pre-deposit. The Tribunal, by order dated 25.8.2014 in Miscellaneous Order No.41386 of 2014, after hearing both sides, passed the following order: "2. After considering the submissions of both sides and on perusal of the statement placed by the learned counsel, we find that the demand of tax of Rs. 14,89,730/- under Daily Market and Rs. 56,67,524/- under Shop Rent are, prima facie, sustainable. Accordingly, we direct the applicant to predeposit Rs. 72,00,000/- (Rupees seventy two lakhs only)....
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....ce would be caused to the appellant and the entire work of the Municipality will come to a standstill. 6. Per contra, learned standing counsel appearing for the Revenue submits that the appellant itself had admitted before the Adjudicating Authority by letter dated 10.6.2013 that they would collect service tax from the users from 2007-08 and would remit the same in due course. In this connection, he relied upon the decision of the Supreme Court in the case of P.K.Hospitality Services Ltd. V. UOI reported in 2012 (26) STR J142 (SC), wherein the Supreme Court directed the assessee to pay the amount demanded in instalments. Hence, the Adjudicating Authority is correct in demanding the service tax. 7. Heard learned counsel appearing for the a....