Renting of Immovable Property Including Vacant Land owned by Corporation would Fall within Scope of Taxable Service: CESTAT

CESTAT Bangalore ruled that renting immovable property by Thrissur Municipal Corporation constitutes taxable service. The appeal contested a Service Tax demand confirmed by the Commissioner under the GST Act. The bench acknowledged payment for services related to business but disputed taxable values. \r

It found no intent to evade tax, overturning the demand for the extended period and limiting it to the normal period of limitation. Telecom services were exempt due to limitation. The matter was remanded for tax redetermination under each category, considering appellant's submissions. Penalties were waived, and appellants were granted an opportunity to be heard. \r

The appeal was allowed through remand.