TaxTMI 
TaxTMI 
2024 (8) TMI 1330
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....rket Act, 1961 (hereinafter referred to as the 'RAPM Act) holding Service Tax Registration No. AAAJK0853HSD001 under the category of "Renting of Immoveable Property". The Appellant regulates the sale of agricultural produce in notified markets. They charge 'market fee' for issuing license to traders, agents, factory/cold storage owners or other buyers of agricultural produce. They also let out land and shops to traders and collect 'allotment fee' or lease amount for such land/shops. It has been alleged that during the period from 01.04.2012 to 30.06.2012, the appellant has collected rent amounting to Rs.39,23,493/- from their traders for storage and warehousing of the agriculture produce which this activity of the appellant falls under the definition of "Renting of Immovable Property Service" in view of the provisions of clause (90a) read with clause (105) (zzzz) of Section 65 of the Finance Act, 1994. 2.1 A Show Cause Notice dated 19.06.2014 was issued to the Appellants to show cause demanding Service Tax amounting Rs. 5,74,245/- for the period from 1.04.2012 to 31.03.2013 under the category of 'Renting of Immovable Property under proviso to Section 73(1) ....
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....inted u/s 3 of the CGST Act, 2017 for exercise of powers and discharge of duties as provided under the CGST Act, 2017. He further stated that the adjudicating authority is not mentioned under the aforesaid definition of the term 'Central Excise Officer' defined under the Excise Act for issue of show cause notice pertaining to the Central Excise Act. Hence, the impugned order-in-original has been passed illegally without any authority or jurisdiction. In this regard, Ld. Chartered Accountant relied upon the decision of the Tribunal in the case of Teracom Ltd. vs. Commissioner of C. Ex. & S.T., Jaipur-I [2016 (339) E.L.T. 272 wherein the Tribunal held that if the show cause notice is issued without jurisdiction then the proceedings initiated thereon are not sustainable. 3.1 Learned Chartered Accountant further contended that the Adjudicating Authority has failed to consider that the demand raised by vide the impugned show cause notice for the period 01.04.2012 to 30.06.2012 is barred by limitation. In support of his submission, Learned Chartered Accountant relied upon the following decisions:- * Punjab Ex Servicemen Corpn. Vs. CCE, Chandigarh 2009 (13) STR 529 (Tri.-Del.) ....
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....et Committees are claiming exemption under the 2006 circular. ................................................................... 7. As per the exemption circular only such activities performed by the sovereign/public authorities under the provisions of law being mandatory and statutory functions and the fee collected for performing such activities is in the nature of a compulsory levy as per the provisions of the relevant statute and it is deposited into the Government Treasury, no service tax is leviable on such activities. In paragraph 3, it is also specifically clarified that if such authority performs a service, which is not in the nature of a statutory activity and the same is undertaken for consideration, then in such cases, service tax would be leviable, if the activity undertaken falls within the ambit of a taxable service. Thus, the language used in the 2006 circular is clear, unambiguous and is capable of determining a defined meaning. 8. The exemption notification should not be liberally construed and beneficiary must fall within the ambit of the exemption and fulfil the conditions thereof. In case such conditions are not fulfilled, the issue of application of the n....
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....n seems to be attractive but has no substance. Section 9(2) is an enabling provision and the words used is "market committee may". It is to be noted that in so far as sub-section (1) of Section 9 is concerned, the word used is "shall". Therefore, wherever the legislature intended that the particular activity is a mandatory statutory, the legislature has used the word "shall". Therefore, when under sub-section (2) of Section 9, the word used is "may", the activities mentioned in Section 9(2)(xvii) cannot be said to be mandatory statutory duty and/or activity. Under Section 9(2), it is not a mandatory statutory duty cast upon the Market Committees to allot/lease/rent the shop/platform/land/space to the traders. Hence, such an activity cannot be said to be a mandatory statutory activity as contended on behalf of the appellants. Even the fees which is collected is not deposited into the Government Treasury. It will go to the Market Committee Fund and will be used by the market committee(s). In the facts of the case on hand, such a fee collected cannot have the characteristics of the statutory levy/statutory fee. Thus, under the Act, 1961, it cannot be said to be a mandatory statutory o....
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.... Committees into the Government Treasury/sub-treasury or a bank duly approved, it ceases to be the Market Committee Fund. It will continue to be the Market Committee Fund. Even it is the case on behalf of the appellants that the fees collected, which will be deposited in the Market Committee Fund will be utilized by the Market Committee for expanding/benefit of the Market Committee etc. 11. Even otherwise, it is to be noted that on and after 1-7-2012, such activities carried out by the Agricultural Produce Market Committees is placed in the Negative List. If the intention of the Revenue was to exempt such activities of the Market Committees from levy of service tax, in that case, there was no necessity for the Revenue subsequently to place such activity of the Market Committees in the Negative List. The fact that, on and after 1-7-2012, such activity by the Market Committees is put in the Negative List, it can safely be said that under the 2006 circular, the Market Committees were not exempted from payment of service tax on such activities. At this stage, it is required to be noted that it is not the case on behalf of the Market Committees that the activity of rent/lease on shop/....