2024 (7) TMI 1000

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....s permission to provide parking facility, whereas the space given for the said purpose is on lease accruing lease rent to the appellant. Such leasing of space liable to service tax as per Entry No. 24 of Notification No. 25/2012-ST date 20.6.2012. Therefore, demand of service tax along with interest and penalty under section 78 of the said Act is sustainable. However, the appellant is eligible to pay reduced penalty at 25% if service tax and interest is paid within a period of thirty day of receipt of this order, as provided under second proviso to section 78 of the said Act. Further as penalty under section 78 has already been imposed, penalty/ late fees under Section 70 and 77 of the said Act was not warranted and the same is set aside. ORDER The appeal is partly allowed and the OIO is modified in above terms. 2.1 Appellant (Divisional Commercial Manager, North Central Railway, Agra Cantt, Agra) is engaged in providing space for parking facility but the did not obtain Service Tax registration was not paying service tax on the rent received from their customers /contractors for providing space for parking facility since 1st July, 2012. 2.2 Appellant leased lan....

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....Order-In-Original No. 36/AC/ST/ADJ/AGRA/2017 dated15.06.2017 holding as follows: a. I hereby confirm the demand of Service Tax amounting to Rs. 41,32,804/- (Rupees Forty One Lacs Thirty Two Thousand Eight Hundred Four) only upon Divisional Commercial Manager, North Central Railway, Agra Cantt, Agra and order for its recovery under Section 73(2) of the Finance Act, 1994. b. I also confirm the demand of interest at the appropriate rate upon the noticee under Section 75 of Finance Act, 1994. c. I impose a Penalty of Rs. 41,32,804/- (Rupees Forty One Lacs Thirty Two Thousand Eight Hundred Four) only upon the Noticee under Section 78 of the Finance Act, 1994. d. I impose a late fee of Rs, 1,60,000/ -(Rupees One Lakh Sixty Thousand) only upon the said Noticee under for not filing the ST-3 returns for the period as discussed above under Section 70 of the Finance Act,1994 read with rule 7 of the Service Tax Rules, 1994 e. I also impose a Penalty of Rs, 5,000/- (Rupees Five Thousand) only upon the Noticee under Section 77 (2) of the Act, ibid as discussed above. 2.6 Aggrieved appellant filed the appeal before the first appellate authority whic....

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....d any tenancy rights over the land and hence the said agreement cannot be said to be lease agreement for the land to be used for providing the parking facilities. The leasing of land for providing parking facilities is as such excluded from the Sl No 24 of the Notification No 25/2012-ST. 4.5 Indian Railways is providing similar parking facilities to the general public across India. If the demand of service tax was to be made in respect of these parking facilities, then the issue should have spanned pan India. I order to ascertain the practice of levy of service tax on these facilities, North Central Railway Zone having its Head Quarter at Prayagraj, the counsel for appellant was directed to get an affidavit filed by some Senior officer in this regard after ascertaining the practice across the zone. Affidavit of Sr Divisional Comml Manager N C Railway Agra has been filed, which is reproduced below : From perusal of the above affidavit it is quite evident that across the North Central Zone, the service tax was not collected by the railway authorities in respect of similar facilities provided any where. It also appears that no demand were also made, in any other jursidiction by ....

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