TaxTMI 
TaxTMI 
2017 (11) TMI 886
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 1. ST/27456/2013 Kovvur Municipality CC, CE & ST, Guntur OIA No. 25/2013 (G) ST dt. 05.04.2013 2. ST/COD/21526/2015 ST/20561/2015 The Greater Visakhapatnam Municipal Corporation CCE, Visakhapatnam-I OIA No. 43/2014(V-I) ST dt. 30.07.2014 3. ST/COD/21427/2015 ST/22318/2015 Bhimavaram Municipality CC, CE & ST, Guntur OIA No. 17/2014 (G) ST dt. 04.02.2014 4. ST/EH/30706/2016 ST/25174/2013 Greater Hyderabad Municipal Corporation CCE, C & ST, Hyderabad-I OIO No. 21/2012-(ST)-Commr. Dt. 15.11.2012 5. ST/EH/30708/2016 ST/3226/2012 -do- CCE, C & ST, Hyderabad-II OIO No. 05/2010-ST dt. 27.02.2010 6. ST/COD/30329/2017 ST/30586/2017 The Puttur Municipality CCE, C & ST, Tirupati OIA No. TTD-EXCUS-000-APP-037-16-17 dt. 25.11.2016 7. ST/COD/30534/2017 ST/30934/2017 Greater Hyderabad Municipal Corporation CCE, Hyderabad-G ST OIO No. HYD-SVTAX-000-COM-177-16-17 dt. 16.01.2017 8. ST/1887/2012 Vijayawada Municipal Corporation CC, CE & ST, Guntur OIO No. 26/2012-ST (COMMR) dt. 30.03.2012 9. ST/2778/2012 Greater Visakhapatnam Municipal Corporation CCE, C & ST, Visakhapat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....emands 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 owned by the appellants. Based on the data collected by the Department, proceedings were initiated against the appellants proposing demand of service tax under these two heads. These proposals were largely confirmed by the original authority. On appeal to Commissioner(Appeals), except for waiver of penalties in some cases by and large, the tax demands were upheld. Accordingly, the appellants are before this forum. 3. Today when the matter came up for hearing, the appellants were represented by Shri Y. Srineevasa Reddy, learned Advocate and Shri Venkateshwara Rao, learned Advocate. The chart containing the details of the appeals, the appellants concerned, the period involved, demand of tax on renting of immovable ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2043/2014 Kandukuru Municipality -do- 1,07,615 8,127 ST/20835/2015 Tuni Municipality 2011-12 to 2012-13 4,26,016 16,312 4. The learned advocate submits that in respect of renting of immovable property, in many cases, the demand thereof are hit by limitation. However for the normal period, the appellants accept their liability in respect of this head. 5. In respect of service tax liability demanded by the Department on alleged sale of space or time for advertisement service, the learned advocate takes us to the Gazette Notification published by the municipal corporation, Rajahmundry wherein the rate of tax within the municipal limits has been indicated. He also submits that the Section 197 (1f) authorising municipal taxation on advertisements of the Greater Hyderabad Municipal Corporation Act, 1955, has been adopted in respect of all the municipal corporations 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 o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dies, 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 suppression or wilfull misstatement with intent to evade tax. In arriving at this conclusion, we are fortified by the decision of this Tribunal in Birhanmumbai Municipal Corporation Vs. CST, Mumbai-I [2017-TIOL-1846-CESTAT-MUM], in which decision one of us was a Member. 9.2. Accordingly, we hold that the demand of service tax amounts will sustain in respect of renting of immovable property, in respect of all these appeals but only for the normal period of limitation, along with interest liability thereof as applicable. The demands of service tax beyond the normal period of limitation will require to be set aside, which we hereby do. For the same reasons, there shall be no penalties in respect of the demands within the normal period. 9.3. Coming to the issue of dispute on sale of space and time, the learned advocates for the appellants have contended that the activity soug....