CESTAT quashes Service Tax Demand on Execution of Sub-Lease of Vacant Land under ‘Renting of Immovable property Service’ on ground of Limitation [Read Order]

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) quashed the service tax demand on execution of sub-lease of vacant land under the category of renting of immovable property service on the ground of limitation. 

Luxmi Township Limited, the appellant assessee is engaged, inter alia, in the business of setting up modern Townships which include infrastructure and support facilities, and the assessee obtained permission from the Government of West Bengal to occupy the land to set up a satellite Township. 

The assessee appealed against the order passed by the adjudicating authority for confirming the service tax demand along with the interest and for the imposition of penalty against the assessee under the category of renting immovable property. 

Pulak Saha, the counsel for the assessee contended that the assessee was registered with the service tax department under the category of 'Renting of immovable property' and was paying service tax regularly had filed the service tax returns regularly, and had not suppressed any information from the department and extended period not invocable to demand service tax. 

K Chowdhary, the counsel for the department relied on the decisions made by the lower authorities and contended that the invocation of an extended period was as per the law and liable to be sustained. 

The Bench observed that there was no suppression involved in this case and the entire demand issued in this case was barred by limitation. 

The two-member bench comprising Ashok Jindal (Judicial) and Anpazhakan (Technical) quashed the service tax demand while allowing the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates