CESTAT allowed the appeal substantially. It held that amounts...

CESTAT allowed the appeal substantially. It held that amounts recovered from tenants towards electricity, transmission and distribution losses, gas and air-conditioning, collected as a pure agent under Rule 5 of the Service Tax (Determination of Value) Rules, 2006, were not liable to service tax as bundled services; the demand of Rs. 2,32,48,096/- was set aside. Service tax of Rs. 7,010/- under RCM on legal services, already paid with interest and not contested, was upheld. Disallowance of CENVAT credit was restricted to Rs. 90,787/- (with interest), as voluntarily reversed; the balance disallowance was quashed. Demands on advances, being refundable loans, were set aside. Absence of intent to evade being established, all penalties imposed in the impugned order were vacated.

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