2018 (3) TMI 551 – CESTAT CHENNAI – TMI – Renting of immovable property service – non-payment of service tax – Finance Bill, 2017 inserted a new Section 104 retrospectively exempting from service tax the services rendered by State Government Industrial Development Corporation – whether the said exemption would be eligible for appellant or not? – Held that: – the matter requires to be remanded to the adjudicating authority as to the application of section104, newly introduced by the Finance Bill 2017 – appeal allowed by wya of remand. – ST/Misc./40910/2017 and ST/40953 to 40956/2015 and ST/40653 & 40654/2016 – A/40121-40126/2018 – Dated:- 16-1-2018 – Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri G. Baskar and Ms. Sushma Harini, Advocate – for the Appellant Ms. P. Hemavathi, Commissioner (AR) – for the Respondent ORDER Per: Bench Revenue has filed a miscellaneous application seeking change of cause title from Commissioner of Service Tax
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tegory of services, show cause notice was issued to the appellant which after adjudication culminated in the confirmation of demand, interest and penalties. Aggrieved, the appellants are now before the Tribunal. 5. On behalf of the appellant, ld. counsel Shri G. Bhaskar and Ms. Sushma Harini appeared and argued the matter. It was submitted that the appellant are incorporated as a company for setting up establishment and promotion of Industrial Estates within the State. Pursuant to its objects, appellants are engaged, inter alia, in the business of developing Industrial Estates and Housing Plots and acquires lands in accordance with procedure established under law. The Finance Bill, 2017 inserted a new Section 104 retrospectively exempting from service tax the services rendered by State Government Industrial Development Corporation. The said exemption granted would be eligible for the appellant and therefore the demand of service tax is unsustainable. It is submitted that for a subseque
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agreed to be provided by a State Government industrial development corporation or undertaking to industrial units by way of grant of long term lease of thirty years or more for industrial plots, shall be levied and collected during the period commencing from the 1st day of June, 2007 and ending with 21st day of September, 2016 (both days inclusive). (2) Refund shall be made of all such service tax which has been collected, but which would not have been so collected, had sub-section (1) been in force at all times. (3) Notwithstanding anything contained in this Chapter, an application for claim of refund of service tax shall be made within a period of six months from the date on which the Finance Bill, 2017 receives the assent of the President. 9. The ld. consultant has submitted that the lease in the plots in the present was given for 99 years and that the payment of service tax on the considerations received on the development charges etc. cannot sustain for the reason that they have b
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n assets (ii) Land – as is where is condition (iii) Development Charges – Common infrastructures 3 Business Support Service Water Charges- actual consumption basis -No Service 4 Renting of immovable property Chennai Port Trust – Amount Collected Development Charges / Plot Deposit. APRIL 2012 to JUNE 2012 (Sl. No. 4) Sl. Category of Service Rs. 1. Development Charges 2,92,39,097 2. Maintenance Charges 95,68,315 3. Sub -lease Charges 2,13,860 4. Track Rent 8,63,301 5. Rent on building 55,562 6. Processing fees 20,827 Total 3,99,60,962 JULY 2012 to SEPTMEBER 2014 (Sl. Nos. 5 &6) Sl Category of service July 2012 TO Sep 13 Oct 2013 to Sep 14 1. 50% Water Supply Capital cost 18,99,828 – 2. 50% Water Supply Capital cost & Development Charges 58,41,68,966 28,54,98,668 3. Gross Service tax demanded 58,60,68,794 28,54,98,668 4. S. Tax(33%) amount already remitted 19,34,02,702 9,42,14,650 5. Net service tax payable 39,26,66,092 19,12,84,018 10. Taking into consideration the arguments put
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