MAHESH VAKTAWARMAL RATHOD Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE appellant is in appeal against the impugned Order -in -Appeal No. P -III/RP/141/2013, dated 15 -5 -2013 passed by the Commissioner of Central Excise (Appeals), Pune -III, in which penalty was imposed under Section 76 of the Finance Act, 1994. The facts are that the appellant had rented out their premises to M/s. Loot India Pvt. Ltd. Renting of immovable property was brought under the Service Tax net under Section 65(105)(zzzz) w.e.f. 1 -6 -2007. The levy was challenged by M/s. Retailers Association of India in the Hon'ble Bombay High Court. Later, because the levy was struck down by the Hon'ble Bombay High Court, Government amended the Section making the levy retrospectively valid from 1 -6 -2007. The Retailers Association went in appeal to the Supreme Court, who stayed the operation of the levy on 14 -10 -2011 subject to following of certain conditions, such as payment of portion of the Service Tax in instalments. However, the order was applicable only to Service Tax liability from 1 -6 -2007 to 30 -9 -2011 in respect of the applicants. In the present case, the recipient of service being a party to the association of Retailer's Association of India did not fulfill the condition of the Supreme Court. The service provider in this case did not challenge the levy and was not a party in the case before the Hon'ble Supreme Court. However, they paid the Service Tax on 10 -12 -2012 with interest and also filed the Service Tax returns.

(2.) HEARD both sides.

(3.) THE learned AR reiterates the findings of the Commissioner and drew attention to Section 80(2) in which penalty under Section 76 was waived subject to the condition that the amount of Service Tax along with interest is paid in full within a period of six months on which the Finance Bill was passed i.e. before 26 -11 -2012.