TaxTMI 
TaxTMI 
2023 (7) TMI 206
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....ervice tax, education cess, secondary and higher education cess amounting to Rs.12,93,104/- on the "Renting of Immovable Property Service" rendered by them for the period from 1.4.2010 to 31.3.2011. The Original Authority after issue of show cause notice to the appellant and following the formalities addressed the question as to whether demand under "Renting of Immovable Property Service" is sustainable or not during the impugned period, in his order. He confirmed the demand for duty relying on the Hon'ble High Court's decision in Home Solutions Retail India Ltd Vs Union of India [2011 (24) STR 129 (DEL)] wherein the leviability of Service Tax on Renting of Immovable Property Services has been held constitutionally valid and the amendment g....
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....submitted that the prayer in their appeal may be allowed. 5. The learned AR Smt. Anandalakshmi Ganeshram appearing for Revenue submitted that the appellant's prayer in their appeal is for waiving the interest demanded and the penalties imposed and that the appellant is not disputing the levy of service tax as confirmed in the impugned order. She also submitted that the appellant is liable to pay both interest and penalty and placed reliance on the decision of the Tribunal in the case of Coal Mines Provident Fund Organisation Vs. CCE reported in 2020 -TIOL-1726-CESTAT-KOL. 6. We have heard both the parties. We find that the prayer made in this case is as under:- "Under the circumstances, the appellant requests the Hon'ble CESTAT to consi....
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....t credit if the commercial activity involves provision of taxable service or manufacture of dutiable goods. However, the Hon'ble High court of Delhi in its order dated 18.04.2009 in the case of Home Solutions Retail India Ltd. & Others vs. UOI has struck down this levy by observing that the renting of immovable property for use in the course of furtherance of business or commerce does not involve any value addition and therefore, cannot be regarded as service. Apart from the revenue loss caused to the exchequer, the judgement has placed the landlords in a very precarious situation. In view of this judgement, the commercial tenants have stopped them reimbursing the tax element. However, the landlords are receiving regular demand notices from....
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.... also clear from the Explanation to the validation section which says that no act or acts on the part of any person shall be punishable as an offence which would have been so punishable if the section had not come into force. 8. The liability to pay interest would only arise in default and is really in the nature of a quasi-punishment. Such liability although created retrospectively could not entail the punishment of payment of interest with retrospective effect." 8. We find, as sated in the DO letter of the Joint Secretary (Tax Research Unit-II) dated 26/02/2010, that an amendment was made to the 'Renting of immovable property service' in order to overcome the earlier judgment of the Hon'ble High court of Delhi in its order dated 18.04.....