Tuticorin Sri Subramanya Swami Vs Commissioner of GST & Central Excise (CESTAT Chennai)
The CESTAT Chennai disposed of an appeal filed by a society registered under the Tamil Nadu Societies Registration Act against service tax demands raised under “Renting of Immovable Property Service” for the period from June 2007 to March 2014. The department alleged that the appellant had rented shops constructed on immovable properties for commercial purposes without obtaining registration or paying service tax. Two show cause notices were issued demanding service tax, interest, and penalties. The Commissioner (Appeals) partly allowed the appeal by extending benefits under Notification Nos. 24/2007-ST and 29/2012-ST and remanded the matter for re-quantification, following which the appellant approached the Tribunal.
Before the Tribunal, the appellant argued that the shops were situated within temple precincts and the income generated was used for religious and charitable activities. The appellant also claimed exemption under Notification No. 25/2012-ST, challenged invocation of the extended limitation period, sought cum-tax benefit, and requested waiver of penalties on the ground of bona fide belief and absence of suppression. The Revenue contended that the appellant had admitted tax liability before the Commissioner (Appeals), that cum-tax benefit was unavailable, and that the appellant could not raise fresh issues at the second appellate stage.
