Gwalior Trade Fair Authority Vs Commissioner of CGST (CESTAT Delhi)
The appeal concerned the challenge to an Order-in-Original dated 31 October 2018, which confirmed service tax under the category of “Renting of Immovable Property Service” by invoking the extended period of limitation, along with interest and penalty under the Finance Act, 1994. The appellant, an authority constituted under the Gwalior Vyapar Mela Adhiniyam Act, 1996, has been organizing the Gwalior Trade Fair since 1905 and is managed by various officials of the Madhya Pradesh Government.
In 2004, the Department issued a show cause notice alleging tax liability under “Business Exhibition Service,” which was confirmed by the adjudicating authority and upheld by the Commissioner (Appeals). The appellant challenged this before the High Court of Madhya Pradesh, which on 13 September 2011 quashed both orders, holding that no service tax liability arose under that category.
Subsequently, based on intelligence, the Department initiated a fresh enquiry and found that the appellant had collected Rs. 17,51,48,687 as taxable receipts from renting immovable property but had not paid corresponding service tax. A show cause notice dated 13 November 2017 was issued covering the period 2012–13 to 2016–17, invoking the extended period under Section 73(1). The adjudicating authority confirmed a demand of Rs. 2,40,79,808 along with interest and penalty.
