TaxTMI 
TaxTMI 
2024 (3) TMI 16
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....ellant are taxable to service under the category of 'Renting of Immovable Property' as per the provisions of Finance Act, 1994. A show cause notice dated 30.07.2012 demanding service tax was issued to the appellant which got adjudicated by the impugned order-in-original dated 26.02.2014 whereunder the service tax of Rs. 3,25,670/- was confirmed as per the provisions of Section 73(1) of Finance Act, 1994. Penalty under Section 78 as well as under Section 77 has also been imposed. Interest provisions as provided under Section 75 of the Finance Act, has also been confirmed. The appellant has made appeal before Commissioner (Appeals) who vide impugned order-in-appeal dated 21.08.2014 has upheld the order-in-original. The appellant is before us ....
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....persons. 4. Learned advocate has drawn our attention to the CBEC Circular No. 96/7/2007-ST dated 23.08.2007 wherein it has been clarified that activities undertaken as mandatory or statutory functions by public authorities under the provisions of any law does not constitute any taxable service and that any fee or amount collected, in such case, is not to be treated as consideration for the purpose of levy of service tax. The learned advocate has also relied upon the decision of this Tribunal in the case of Nagar Nigam vs. CCE & ST, Meerut reported under 2019 (21) GSTL 436 (Tri. Del.). Learned advocate has also taken us through Section 63, sub-Section 12 of Gujarat Provincial Municipal Corporation Act, 1949 to emphasize that the constructio....
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.... admittedly the authority is existing under the Municipal Act, 1960, as came into effect in furtherance of Article 285 of Constitution of India. Section 128 of the said Municipal Act clarifies that the amount received by the Nagar Nigam from the traders permitting them to carry out their activities within the municipal limits shall be collected in the form of the tax. The provision is sufficient to hold that the activity is intended to be a sovereign Act of the Nagar Nigam. 6. Resultantly, we are of the opinion that the authority below has wrongly considered it as a service being rendered by the appellant to the said traders. In such scenario, emphasis on the definition of "renting of immovable property" under the Finance Act has no more....