TaxTMI 
TaxTMI 
2019 (4) TMI 1559
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....acilitating the sale of the agriculture produces the Krishi Upaj Mandi Samittee have built infrastructure of sale and purchase of agriculture produces at various places in Madhya Pradesh which also involves construction of the shops and other sale/purchase outlets in the various Krishi Mandis of the State. The shops and outlets constructed by the Mandi Samiti various places are being given on rent/fee to various traders and farmers for sale purchases of the agriculture produces. The department has been of view that the renting of shops and other outlets attracts service tax under the category of renting of immovable property and, therefore, a show cause notice dated 05/08/2013 was issued to the appellant demanding a service tax of Rs. 7,92,....
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....her filed any service tax return nor they have deposited the service tax on the rents collected by them from letting out of shops/godowns. It has also been contended by the learned Advocate that there was a doubt in the mind of departmental officer also regarding whether the shops and godowns of the Krishi Upaj Mandi Samittee are covered by the provisions of running of the immovable property for purposes and the payment of the service tax and certain references have been made to the Central Board of Excise & Customs in this regard. The CBEC vide its Circular No. 157/8/2012-ST dated 24 April 2012 has clarified that no service tax is applicable on the activities carried out by the Agriculture Produce Marketing Committees except renting of the....
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....e learned Advocate has pleaded that extended time proviso under Section 73 of the Finance Act, 1994 is not invokable in this case and there are no grounds for imposition of any penalty as the circumstances in this case are fit to be covered by Section 80 of the Finance Act, 1994. 3. We have also heard learned DR who has reiterated the findings of the order-in-appeal. 4. Having heard both the sides and after perusal of the record, we feel that the matter got clarify only after the Central Board of Excise & Customs has clarified the issue vide Circular No. 157/8/2012-ST dated 27 April 2012 wherein it was provided that activities undertaken by the APMCs are not covered under service tax leviability except renting of the shops in the market....
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....then the demand for not paid or short paid Service Tax can be made invoking extended period of limitation of 5 years, from the relevant date. Admittedly, the appellants are a Government Organisation; their functions are regulated by the said enactment and the rules. In such situation, it is clear that there will be a rebuttable presumption regarding non-existence of any of these ingredients on the part of the appellant. We have perused the reasons recorded by the lower authorities to sustain the demand for longer period. We are not convinced with the findings as there is no evidence of the appellants' mala fide act to evade Service Tax liability by resorting to conduct, which will attract any of the serious allegation listed in the proviso ....