By TIOL News Service

MUMBAI, SEPT 20, 2014: THE service in question is ‘Renting of Immovable Property Service'.

Against the appellant, a Service Tax demand of Rs.4.37 lakhs was confirmed by the adjudicating authority and the amount of Rs.2.42 lakhs paid was appropriated along with interest of Rs.144/-. As the Commissioner (A) upheld the order, the appellant is before the CESTAT.

It is submitted that the tenant of the appellant is a party challenging the service tax levy of ‘Renting of Immovable Property' in Retailer Association of India and in terms of the Supreme Court order - 2011-TIOL-104-SC-ST, the tenant has executed surety bond for the 50% of the service tax demand confirmed and, therefore, stay be granted. A copy of the said surety bond was also placed on record by the appellant.

The Bench observed -

"During the previous proceeding on 22.07.2014, the revenue was asked to verify whether the surety bond as per Hon'ble Apex Court order has been complied with or not. In response thereof, a letter dated 13.08.2014 has been submitted signed by the Commissioner of Central Excise, Pune III wherein the confirmation sought for by the Bench is not forthcoming and so many other useless information is reproduced. On perusal of the surety bond executed, it is seen that it is not in the surety bond format which has to be accepted in favour of the President of the India through the jurisdictional Asst. Commissioner. The bond has to be signed in the presence of the competent authority who has to accept the same. Inasmuch as it has not been done, we direct the appellant to inform the tenant to execute the bond in the proper format before the competent authority who shall accept the same, after considering the credit worthiness of the surety."

The appellant sought four weeks' time to complete the formality and, therefore, the stay petitions were directed to be listed on 30.09.2014 for completion of the surety bond formality.

The matter was adjourned to 30.09.2014.

(See 2014-TIOL-1802-CESTAT-MUM)