2017 (6) TMI 325

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.... Tax Registration for payment of Service Tax on the taxable service of Renting of Immovable Property Service and has paid service tax and filed ST-3 Return for the period upto March 2009 but they have neither filed ST-3 Returns nor paid service tax for the period from April 2009 to September 2009 and October 2009 to March 2010. It was noticed that the rented out premises was used in the course of furtherance of business or commerce and the appellant had collected rent of Rs. 27,94,764/- (Rupees Twenty Seven Lakhs Ninety Four Thousand Seven Hundred and Sixty Four only) for the period from April 2009 to March 2010 but they have not paid the service tax of Rs. 2,79,476/- (Rupees Two Lakhs Seventy Nine Thousand Four Hundred and Seventy Six only....

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....e period between April 2009 to March 2010 Service Tax was not paid and the returns were filed in view of the judgment of the Hon'ble High Court of Delhi in the matter of Home Solution Retail India Ltd. Vs. Union of India in Civil Writ Petition No.1659/2008 wherein it was held that no service is involved in the act of mere Renting of Immovable Property. The Department aggrieved by the said decision of the Delhi High Court filed the appeal before the Supreme Court but no stay was granted. He further submitted that this issue was pending before various High Courts in the country which took almost the same stand as was taken by the High Court of Delhi. He further submitted that thereafter the Government amended the definition of 'servic....

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.... April 2009 onwards on account of the decision of the Delhi High Court in the case of Home Solution Retail India Ltd. wherein the Delhi High Court has held that Renting of Immovable Property does not fall in the definition of 'service'. Further I find that the Government brought amendment in the definition of 'service' which was made applicable retrospectively w.e.f. 01.06.2007 setting at rest the disputes arising by way of Court decisions. After the amendment the appellant paid the service tax along with interest but in spite of that the Department issued the show-cause notice and finally imposed the penalty on him. The learned counsel further referred the explanation which was added in the Finance Bill 2010 which clearly s....