Super Electricals Vs Commissioner of GST & Central Excise (CESTAT Chennai)
Summary: CESTAT Chennai allowed the appeal of M/s Super Electricals and set aside the service tax demand of Rs.12,43,210/- on “renting of immovable property” service for the period April 2008 to March 2009, together with applicable interest and equivalent penalty. The dispute arose from Order-in-Appeal No.372/2015 (CXA-II) dated 28.10.2015. The appellant, a manufacturer of electrical steel transformer laminations, had leased its premises to M/s. Anmod Stamping Pvt. Ltd. and collected rent of Rs.1,02,00,000/- during 2008-09. The Department issued the show cause notice only on 04.10.2013 by invoking the extended period of limitation. :chatgpt-content-reference{index=”0″}
The appellant contended that the levy itself was debatable during the relevant period because the Delhi High Court in Home Solution Retail India Ltd., 2009 (14) STR 433 (Del), had held that renting of immovable property by itself did not constitute a taxable service. It was only through the Finance Act, 2010 that the law was retrospectively amended to clarify and validate the levy. The appellant relied upon the TRU clarification and several judicial decisions to contend that the uncertainty in law and subsequent retrospective amendment ruled out suppression and consequently invocation of the extended limitation period.
