TaxTMI 
TaxTMI 
2017 (7) TMI 685
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....sioner(AR), Shri M. Chander Bose, Addl. Commissioner(AR), Shri Arun Kumar, Deputy Commissioner(AR), Shri Nagaraj Naik, Deputy Commissioner(AR) and Shri P.S. Reddy, Asst. Commissioner(AR) for the Revenue. ORDER [Order per: Madhu Mohan Damodhar] All these appeals relating to demands of service tax on renting of immovable property and sale of space or time for advertisement by municipalities / corporations, they are taken up together for common disposal. 2. In all these cases, enquiries were conducted by the Department with the appellants relating to (i) income derived in providing municipal buildings and properties for use to various private parties on rental basis; (ii) income derived on account of sale of space or time for advertisement....
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.... 88,703 ST/25069/2013 Anakapallee Municipality April 2010 to March 2011 - 34,256 ST/25113/2013 Anakapallee Municipality April 2010 to March 2011 3,17,478 - ST/25549/2013 Commissioner-Tuni Municipality April 2010 to March 2011 5,44,212 - ST/25667/2013 Commissioner-Mandapeta Municipality April 2010 to March 2011 1,86,364 15,716 ST/25741/2013 Commissioner-Tuni Municipality June 2007 to March 2010 11,08,975 + 4,85,547 - ST/25748/2013 Municipal Corportion-Rajahmundry April 2010 to March 2011 - 14,11,100 ST/20627/2014 Municipal Corportion-Rajahmundry October 2010 to September 2011 9,24,116 - ST/20013/2015 Anakapalle Municipality April 2011 to March 2012 3,65,340 - ST/20028/2015 Municipal Commissioner-Ana....
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....ions herein and in respect of the other appellants they are authorised to collect the said tax vide Section 114 of the Andhra Pradesh Municipalities Act, 1965. He submits that revenues that have accrued on this score are being sought to be taxed as service tax by the Department under sale of space or time for advertisement service. Accordingly, learned advocate contends that tax on tax may not be imposed as clarified in the Board's circular No.192/02/2016-S.T. dt. 13/04/2016. He relies upon the judgment of the Hon'ble High Court of Gujarat in the case of Selvel Media Services Private Ltd. Vs. Municipal Corporation of City of Ahmedabad [2016(45) STR 166 (Guj.)], in support of his contention that certain fees collected and charged by the muni....
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....the said activity is not being shown to be covered by any exclusion or exemption from service tax thereof. We therefore hold that this activity will definitely be leviable to service tax but only for the normal period of limitation. However for the periods beyond the period of limitation in all these cases, notwithstanding the protestations of the learned ARs to the contrary, we are of the opinion that appellants being statutory bodies, they cannot be held to have suppressed facts with any intent to evade payment of tax. At the most, there would be some confusion or delay in understanding their liability to discharge service tax on that matter where a particular activity would be liable for service tax but certainly not accusations of suppr....
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....me confusion in the whole matter. The contention of the Department is that the amounts collected also include consideration towards sale of time and space towards hiring out the public space for putting up hoardings and advertisement, hence that will be includable under the taxable category of space and time advertisement. However, that contention is not coming forth either in the show-cause notice or in the orders of the lower authorities. In fact, the aforesaid letter relied upon in the show-cause notice has only added to the confusion terms contentions are seen in the same letter. We are of the considered opinion that if the amounts received by the appellants are only towards advertisement tax collected by them under statutory powers bes....