TIRUPPATTUR MUNICIPALITY Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) THIS Civil Miscellaneous Appeal is filed as against the order dated 25.08.2014 passed by the Customs, Excise and Service Tax Appellate Tribunal, Chennai.

(2.) THE appellant/assessee is in charge of the Municipal Administration and Water Distribution for the areas falling under the territorial jurisdiction of the said municipality. The case of the Department is that renting of immovable property was brought under service tax net with effect from 01.06.2007 under Clause (90a) of Section 65 of the Finance Act, 1994. Finance Act, 2010 has amended the definition of taxable service given in Section 65(105)(zzzz) of the Act to provide explicitly that the activity of "renting" itself is a taxable service. The amendment has been given retrospective effect from 01.06.2007 itself, i.e., the date from which the service tax was levied for the first time on this activity. Hence a show cause notice dated 22.10.2012 was issued to the appellant proposing to demand service tax with interest and penalty. The appellant submitted its reply dated 30.12.2012 contending that the lease were entered into long before the introduction of the said provision and therefore, the demand is not maintainable. After taking into consideration the reply submitted by the assessee, the Adjudicating Authority passed the following order:

(3.) AS against this order of the Tribunal, the assessee is before this Court raising the following substantial questions of law: