Service Tax
TRT-2025-
Cestat Ahmedabad
Date:-29-02-24
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 29 February 2024
Parties: Vadodara Mahanagar Seva Sadan Vs Commissioner of Central Excise & ST, Vadodara-i
Facts –
- The Appellant, Vadodara Mahanagar Seva Sadan, is a Municipal Corporation and being a statutory authority they are discharging sovereign functions which are provided to be undertaken by them as per the Bombay Provincial Municipal Corporation Act, 1949. The appellant had rented/ leased a number of shops to various persons during the period from June 2011 to March 2012.
- A show cause notice dated 30.07.2012 demanding service tax was issued to the appellant alleging that the fee charges recovered by the appellant are taxable to service under the category of ‘Renting of Immovable Property’ as per the provisions of Finance Act, 1994.
Issue –
- Whether the fee charges recovered are taxable to service under the category of ‘Renting of Immovable Property’?
Order –
- The Tribunal observed that matter is no longer res-integra as this Tribunal in the case of Nagar Nigam vs. CCE & ST, Meerut -2019 (21) GSTL 436 (Tri. Del.) has held as the authority below has wrongly considered it as a service being rendered by the appellant to the said traders. In such scenario, emphasis on the definition of “renting of immovable property” under the Finance Act has no more significance. Though the clarification is post the impugned period, however, being merely a clarification and otherwise also beneficial to the impugned assessee, the same has to be given retrospective effect.”
- Following the above decision and because of the fact that the appellant have only collected fee and not rent, held that the impugned order-in-appeal is without any merit and we set-aside the same. Accordingly, the appeal is allowed.
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