2025 (10) TMI 621

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....appellants by reducing the service tax liability from Rs.7,10,469/- to Rs.6,11,589/- after extending benefit of small scale exemption. 2. Briefly stated facts of the present case are that the appellants are engaged in providing taxable services under the category of 'Renting of Immovable Property Services' under Section 65(105)(zzzz) of the Finance Act, 1994. The allegation of the department is that the appellants are getting rent from leasing of various properties but are not paying the service tax and have not got registered with the service tax department. Thereafter, information was sought from the appellants regarding the amount of rent/lease received by them in respect of said services during 01.07.2007 to 31.12.2010. It was found ....

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....He further submits that change in respect of enlargement of scope of 'Renting of Immovable Property Services' introduced by the Finance Act, 2010 was challenged by the assessee PAN India and during the impugned period, the Courts had taken a view that the amendment was unconstitutional and had even granted the Stay in this regard. 4.2 He further submits that the Hon'ble Apex Court vide its order in the case of Union of India vs. UTV News Ltd [2018 (13) GSTL 3 (SC)], while examining a question directly relatable to the scope and ambit of Entry 49 of List-II of the Seventh Schedule to the Constitution of India dealing with "Taxes on Lands and Buildings", has categorically ordered all the cases on this issue to be deferred until the matter ....

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....he appellants has only argued on limitation and has submitted that the demand of service tax amounting to Rs.6,11,589/- is barred by limitation. In this regard, we find that demand of service tax on 'Renting of Immovable Properties' has been subject of litigation from the very beginning. There is no dispute that the activity of the appellants was 'Renting of Immovable Properties', though the service in relation to 'Renting of Immovable Properties' has been brought in the Finance Act with effect from 01.06.2007 by introducing Section 65(105)(zzzz); the validity of this levy had been challenged before the Hon'ble Delhi High Court and the Hon'ble Delhi High Court, vide its judgment dated 18.04.2009 in the case of Home Solution Retail India Ltd....

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....ST, Trichy [vide Final Order No. 40795/2023 dt. 15.09.2023 in Appeal No. ST/40813/2014] have considered the identical issue. The relevant finding of the Chennai Bench in Diocese of Tanjore Society (supra)'s case is reproduced herein below: "6. The appellant has stated that changes proposed by the Union Budget, 2010 in respect of enlargement of scope of Renting of Immovable Property Services' became a part of Finance Act, 2010 and is applicable from the date to be notified. The same was challenged by the assessees PAN India and during the impugned period, the courts had taken a view that the amendment was unconstitutional and had even granted a stay in this regard. Further, the Apex Court vide its order in Union Of India vs UTV ....