TaxTMI 
TaxTMI 
2017 (11) TMI 886
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....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, Visakhapatnam-VI OIO No. 42/2011 (MP) dt. 29.07.2011 10. ST/2971/2012 CCE & CC, Visakhapatnam-I Srikakulam Municipality OIA No. 08/2012 (V-I) (D) S....
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....al 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 property and sale of space and time etc. was submitted by the learned counsels, which are reproduced below for easy reference. Appeal No. Appellant Period Renting of immovable property (Rs.) Advertisement Tax (Rs.) ST/1279/2012 Municipal Corporation-Rajahmundry 2006-07 to 2008-09 - 19,56,715 ST/1280/2012 Munic....
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....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 or time for advertisement service. Accordingly, learned advocate contends that tax on tax may not be imposed as clarified in the Boards 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 municipal corporation to erect certain hoardings on private premises cannot be taxed. 6.1. On the other hand, learned Commissioner(AR), Addition....
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....d 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 sought to be taxed is only relating to collection of tax on advertisements and not on sale of space and time for advertisement per se. Perusal of a sample show-cause notice, in respect of appeal No.ST/1279/2012 filed by Commissioner, Municipal Corporation of Rajahmundry indicates that the entire demand is based on a letter dt. 13/10/2010 of the said Municipal Corporation. The letter seeks to convey the details of advertisement tax collected by the Corporation through private agencies, however, the table immediately below indicates the 'amounts received towards sale of space for advertisements'. Evidently th....