TaxTMI 
TaxTMI 
2020 (6) TMI 279
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....mine the service tax liability on renting of immovable property after allowing the benefit of exemption Notification No. 06/2005-ST dated 01.03.2005. The said demand was raised for recovery of service tax on the consideration received by the party during the period Apri, 2009 to March, 2014 in lieu of providing taxable services of "renting of immovable property" to the arhatis, banks canteen and shops etc. that for the period upto 30.06.12, the services rendered by M/s KUMS, Haridwar were in the nature of taxable services of "renting of immovable property" under Section 65(105)(zzzz) and thereafter it was covered under Section 66B of the Act. 2. As per the aforesaid notification threshold limit of exemption was Rs. 4 lakh which was further amended to Rs. 8 lakh and then to Rs. 10 lakh vide Notification No. 4/2007-ST and Notification No. 8/2008-ST respectively. After 01.07.2012 this threshold limit of Rs. 10 lakh has been continued vide new Notification No. 33/2012-ST dated 20.06.2012. Alleging that the said threshold limit stands crossed that department served a show-cause-notice C.No. IV-CE(9)CP/M-I/152/2014 dated 17.09.2014, proposing recovery of Rs. 1748702/- as demand of ser....
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....ed Post Negative era Section 66D got incorporated which reads as : "66D. The negative list shall comprise of the following services, namely:- . (a) services by Government or a local authority excluding the following services to the extent they are not covered elsewhere- (i) services by the Department of Posts by way of speed post, express parcel post, life insurance and agency services provided to a person other than Government; (ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; . (iii) transport of goods or passengers; or . (iv) [any service] other than services covered under clauses (i) to (iii) above, provided to business entities; . (b) services by the Reserve Bank of India; . (c) services by a foreign diplomatic mission located in India; . (d) services relating to agriculture or agricultural produce by way of- (i) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or [***] testing; . (ii) supply of farm labour; . (iii)....
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....arketing of agricultural produce by provision of facilities and amenities like, sheds, water, light, electricity, grading facilities etc. They also take measures for prevention of sale or purchase of agricultural produce below the minimum support price. APMCs collect market fees, license fees, rents etc. Services provided by such Agricultural Produce Marketing Committee or Board are covered in the negative list. However any service provided by such bodies which is not directly related to agriculture or agricultural produce will be liable to tax e.g. renting of shops or other property." Accordingly, we hold that the appellants are not liable to service tax on renting of immovable property used for storage of agricultural produce in the market area. 5. Hence, the gross rent received w.r.t. activities related to agricultural purposes has to be excluded from the gross value of rent as confirmed by adjudicating authority below. I draw my support from decision of this Tribunal in appellant's own case KUMS Vs. CCE&ST, Jaipur 2017 (4) GSTL 346 (Tri. Del) wherein it was held. Agricultural Produce Marketing Committee - Service Tax in respect of shed/shop/premises leased out to trade....
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....authority has wrongly clubbed to incomes of various Mandi Parishads to that of appellant's value of rent received. Hence, said amount is also liable to be deducted. I draw my support from CCE, Ahmedabad Vs. S.C. Patel 2011 (264) E.L.T. 414 (Tri.-Ahmd.) which it was held that units having separate income/sales tax, import and export code numbers, bank accounts etc. clearances of such units cannot be clubbed. In CCE, Surat-II Vs. Catalco Chemical (P) Ltd. 2012(277) ELT 56 (Guj), it was held that while clubbing of clearances department has to establish mutuality of interest of flowback of funds else clearances of different units cannot be clubbed together for ascertaining the SSI exemption benefit. Since each Mandi Samiti has its own PAN number and that all the statutory dues like Income tax, House Tax & other taxes are deposited separately & individually, thus each Samiti is an independent legal entity and should be treated as a separate body. In view of foregoing discussions and judicial pronouncements, I hold that clubbing receipts of all Samitis is not justified and benefit of exemption limits should be given to the appellant. 9. In view of entire above discussion it becomes cl....