Renting Not Taxable Before 2010 Retrospective Amendment, No Intent to Suppress Income: CESTAT Quashes Demand

The CESTAT quashed a service tax demand on renting income for the period before 2010, holding that the retrospective amendment lacked the intent to suppress income. The tribunal noted that prior to the 2010 amendment, the taxability of renting was ambiguous, and therefore, the non-payment of service tax during that period could not be construed as an intentional suppression of income. The CESTAT found no evidence of willful evasion and set aside the demand. This decision provides relief to assessees for the pre-amendment period, acknowledging the lack of clarity in the tax laws at the time.