TaxTMI 
TaxTMI 
2023 (12) TMI 122
X X X X Extracts X X X X
X X X X Extracts X X X X
....r: Demand (Figures in Rs. ) Category Demand Remarks Supply of Tangible Goods 28,21,087 Entire tax and interest paid before issuance of SCN Business Support Services 16,547 Entire tax and interest paid before issuance of SCN Consulting Engineer Services 1,47,305 Entire tax and interest paid before issuance of SCN Renting of Immovable Property (other than received from contractors) 2,41,079 Entire tax and interest paid before issuance of SCN Renting of Immovable Property from contractors 20,83,934 This is being contested Total Tax 53,09,952 Rs. 20,83,934/- is disputed and Rs. 32,26,018 has been already paid along with interest prior to issuance of SCN Penalty U/s 78 53,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ir grounds of appeal, the appellant submits that the quarters were used by the employees of the contractors only for residential purpose and not as factories, office buildings, warehouses, theatres, exhibition halls and multiple-use buildings so as to constitute for use in the course of furtherance of business. Thus, they contended that the activity of renting of quarters for residential purpose would not be liable to service tax. It is their contention that the term immovable property for the purpose of levying service under the category of Renting of immovable property does not include building solely used for residential purpose. The term 'immovable property' as defined under Explanation 1 to Section 65(105)(zzzz) does not include buildi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e eventual expenses towards rent which would ensure furtherance of business or commerce is completely irrelevant inasmuch as the occupation of the contractor has no relevant but the actual usage of the immovable property whether for residential purpose or used in further of commerce or business will decide the leviability of service tax 9. We observe that the issue has been squarely covered by the decision in the case of Senior Accounst Officer. M.P. Power Generating Co. Pvt. Ltd. Vs. CCE Bhopal [2017 (4) GSTL 199 (Tri. Del)] wherein an identical case has been decided in favour of the assessee and held as under: "7. Admittedly, the residential quarters of the appellants have been given on rent for occupation of the employees of the contr....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... above decision, we hold that the demand of Rs.20,83,934/- along with interest confirmed in the impugned order under the category of 'Renting of Immovable Property Service' is not sustainable. Since the demand itself is not sustainable, the demand of interest and imposition of penalty on this amount is also not sustainable. 11. With regard to imposition of penalty of Rs. 32,26,018/- under Section 78 of the Finance Act, the Appellant submitted that since the Service Tax along with interest was already deposited soon after being pointed out by the department, no penalty is impossible in terms of Section 73(3) of the Finance Act. Since entire service tax along with interest was paid before issue of the Show cause Notice, the Appellant....