TaxTMI 
TaxTMI 
2025 (11) TMI 2063
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....tax for exhibiting of the films in their theater during the period from 2008-2009, 2010-11, show cause notice was issued and thereafter Adjudication authority as per the impugned Order-in-Original dated 11.10.2013 confirmed demand under business support service and renting of immovable property services. In addition to that penalty was also imposed. Aggrieved by said order, present appeal is filed. 2. When the appeal came up for hearing, Learned Counsel for the Appellant submits that Appellant is holding a theater complex named as Saritha, Savitha and Sangeetha and engaged in exhibition of films. The building complex where theater was functioning was leased out till 2007-2008 and thereafter from 2008-2009, the Appellant themselves starte....
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....arding suppression of facts. There was dispute regarding service tax liability on renting of immovable property during the relevant period. It was made taxable by retrospective legislation by Finance Act 2011, due to the order of Hon'ble Delhi High Court in the case of Home Solutions Retail India Ltd. Vs. Union of India [2009(4) TMI 14 - Delhi High Court). Hence there is no deliberate intention or attempt to evade the payment of tax. As such the extended period will not be applicable and penalty u/s 78 is also unsustainable. This issue has been considered by the Hon'ble CESTAT Hyderabad Bench in the case of Hema Abodes Pvt. Ltd. Vs. Commissioner of Central Tax, Vishakapattanam [2025(4) TMI 1064 CESTAT Hyderabad]. 3. Learned Couns....
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.... 4. Learned Counsel further submits that the issue regarding demand of service tax for the subsequent period was confirmed by the Adjudication authority and in appeal, it was set aside by the first Appellate Authority vide order dated 14.12.2018 with the following observation:- "6.7. The appellant in turn provides the service of exhibiting the movie to the public. In this activity since the amounts are received from the viewing public, the service provider is the appellant and the service recipient is the viewing public. From 1 July 2012 this activity falls under the negative list of services at Section 65D (j) which covers admission to entertainment events or access to amusement facilities. It is to be noted that entertainment ev....
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....ipal basis and one does not provide service to another. Hence, in such an arrangement the activities are not covered under service tax". 5.1. And also Circular dated 13.12.2011 where it is clarified that:- "10. To sum-up the above, the arrangements entered into by the distributor or sub-distributor or area distributor etc. and the exhibitor or theatre owner etc. in exhibiting the film produced by the producer, the original copyright holder, the arrangements and their respective service tax classification is tabulated as under:- Type of Arrangement Movie exhibited on whose account Service Tax implication Principal - to -Principal Basis Movie being exhibited by theatre owner or exhibitor on his account - i. e. The c....