CESTAT allowed the appeal and set aside the impugned...

CESTAT allowed the appeal and set aside the impugned order-in-appeal. It held that amounts reflected as miscellaneous income, book-entry adjustments and deposits (including tenant security deposits and sums held for utilities or damages) do not constitute consideration for the service of renting immovable property and therefore are not exigible to service tax; the departmental demand and associated penalties are unsustainable. The Tribunal further held the extended limitation period inapplicable because taxability was an interpretative issue resolved only by later judicial pronouncement and retrospective legislative amendment; consequential relief under the applicable statutory relief provision was accorded to the appellant.

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