TaxTMI 
TaxTMI 
2026 (8) TMI 999
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....012, the appellant had received / collected an amount of Rs. 3,06,738/- from hoarding rent on which it appears liable for payment of service tax under the category of "Sale of Space or Time for Advertisement Services" and that for the period April 2009 to July 2014, an amount of Rs. 3,39,22,974/- as rent from the various immovable property on which it appears liable for payment of service tax under the category of "Renting of Immovable property Services" till the period June 2012 and for the remaining period amount is taxable as "Service" defined under Section 65(B) 44 of the Finance Act, 1994.The appellant, however, failed to furnish the half yearly periodically return in form ST-3 for the said period before the proper officer by the stipulated dates, thus have violated the provisions of Section 70 of the said Act with the proposal of late fee. 1.2 Accordingly service tax amounting to Rs. 39,22,945/- was proposed to be recovered along with interest and penalties under Section 76, 77 and 78 of the Finance Act were proposed vide show cause notice No. 15-75/2014/7249 dated 11.09.2014. Late fee for delay filling of ST-3 returns was also proposed. The said proposal was got confirmed....
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....of the Show Cause Notice in toto. Ld. Counsel impressed upon that while not granting the opportunity to furnish the break-up of the arrears of rent, principal of natural justice was violated. 3.2 Ld. Counsel for appellant further submitted that the order is erroneous also for the reason that it has been passed under incorrect interpretation of the term "Sale of Space or Time for Advertisement". Under Article 243X, the MP Municipalities Act, 1961 was passed. Under this Act, the powers to a Municipality to levy, collect and appropriate such taxes, duties, tolls and fees have been authorized by Section 349 of the Act. This section allows the Municipality to collect licence fee for allotment of land for use. Under this provision only, the Municipality allots land to advertisers, who in turn put up hoardings on that site and sell space on such hoardings. The appellant is denied to have not sold any space for display or for advertisement or showcasing any product on billboards etc. except that license fee, under a statute, has been collected by the appellant for use of land for erection of hoardings. It is impressed upon that this activity does not amount to sale of space for advertis....
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....ice" means any service provided or to be provided, - (zzzm) to any person, by any other person, in relation to sale of space or time for advertisement, in any manner, but does not include sale of space for advertisement in print media and sale of time slots by a broadcasting agency or organization. Explanation 1. For the purposes of this sub-clause, "sale of space or time for advertisement" includes,- (i) providing space or time, as the case may be, for display, advertising, showcasing of any product or service in video programmes, television programmes or motion pictures or music albums, or on billboards, public places, buildings, conveyances, cell phones, automated teller machines, internet; (ii) selling of time slots on radio or television by a person, other than a broadcasting agency or organisation; (iii) aerial advertising 5.1 The activity of providing space for hoardings for advertising is apparently the one covered under the above provision. Hence is held to taxable. Thus we do not find any reason to differ from findings arrived in the impugned order. The order under challenge, to the extent of confirming the demand under the ....
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....tal to the use of such vacant land; (c) land used for educational, sports, circus, entertainment and parking purposes; and (d) building used solely for residential purposes and buildings used for the purposes of accommodation, including hotels, hostels, boarding houses, holiday accommodation, tents, camping facilities. Explanation 2.-For the purposes of this sub-clause, animmovable property partly for use in the course or furtherance of business or commerce and partly for residential or any other purposes shall be deemed to be immovable property for use in the course or furtherance of business or commerce; In the present case, the appellant has provided vacant land for market places i.e. for commercial use. In light of above definition it is clear that activity for commerce doesn't fall under the exclusion clause of the definition of Renting of immovable property, as is claimed by the appellant. The decision of Hon'ble Madras High Court in case of Cuddalore Municipality (Supra) is held to have been wrongly interpreted. The term any other person in the provision above means any person than recipient who may or may not be the owner. In view thereof we do....
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.... is being settles by hon'ble Supreme Court in Krishi Upaj Mandi (Supra) case, wherein it has been held as follows: (a) that while no Service Tax was payable on statutory functions performed by sovereign/public authorities, exemption would not be applicable in respect of other functions not statutory in nature undertaken by such authorities for consideration, if these are otherwise taxable. (b) activity of renting/leasing/allotment of shop/land/platform/space etc. is not a mandatory statutory activity. Section 9(2) ibid, which is enabling provision for carrying out these activities, uses word 'may' instead of 'shall' as used in Section 9(1) ibid -Therefore, legislative intent is to make activities under Section 9(1) ibid as statutorily mandatory, while making activities under Section 9(2) ibid as discretionary - These discretionary activities, therefore, are not statutory - Consideration received for such activities is not statutory levy/fees and is not credited to Government Account in Treasury - Merely because such considerations are required to be deposited in treasury/Bank for use as 'Market Committee Fund', not meaning that it has become Go....