TARADEVI BAFNA Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS application filed by the assessee is for waiver of pre -deposit and stay of recovery in respect of penalty of Rs. 2,48,403/ - imposed on her under Section 76 of the Finance Act, 1994.

(2.) THE service tax payable by her in respect of renting of immovable property to her clients namely, M/s. Oriental Bank of Commerce, for the period from 1 -6 -2007 to 31 -3 -2008 was paid with interest prior to issuance of the relevant show -cause notice. According to the appellant, she never intended to evade payment of the tax. She paid it soon after its recovery from her clients. It was her bona fide belief that service tax, being an indirect tax, could be paid after it was recovered from the client. This apart, the learned Counsel for the applicant submits that the High Court of Delhi in the case reported in : 2009 (14) S.T.R. 433 (Del.) : 2009 (237) E.L.T. 209 (Del.) : 2009 -TIOL -196 -HC -Del -ST held that the renting of immovable property for use in the course or furtherance of business or commerce, by itself, did not entail any value addition and hence could not be regarded as a service.