Service Tax - Renting of Immovable Property - No Penalty
IN a recent case, the CESTAT observed,
The issue involved in the present appeal is payment of Service Tax on renting of property. In terms of the Hon'ble Delhi High Court decision in the case of M/s. Home Solution Retail India order dated 18.04.2009 - , it was held that the service of renting of immovable property by itself cannot be regarded as service. Subsequently, there was retrospective amendment introduced with effect from 01.06.2007 by Finance Act, 2010 and the renting of immovable property was made taxable service to undo the effect of judgment of the Hon'ble Delhi High Court.
In view of the above development, the appellant cannot be held guilty of any mala fide so as to impose penalty upon him.