https://www.taxtmi.com/caselaws?id=782781 CESTAT allowed the appeal filed by the resident welfare association, setting aside the demand of service tax, interest, and penalty. It held that electricity charges for common areas, billed in the association's name and recovered pro rata from members, constituted part of consideration for common area management services and were not in the nature of pure agent expenses. Conversely, water charges collected and remitted without markup were treated as pure agent transactions and excludible from taxable value. As the association had been filing ST-3 returns, paying tax, and entertained a bona fide belief regarding exclusion of these charges, invocation of the extended limitation period was held unsustainable. en-us Thu, 09 Oct 2025 00:00:00 +0530 Thu, 04 Dec 2025 09:19:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782781 CESTAT allowed the appeal filed by the resident welfare association, setting aside the demand of service tax, interest, and penalty. It held that electricity charges for common areas, billed in the association's name and recovered pro rata from members, constituted part of consideration for common area management services and were not in the nature of pure agent expenses. Conversely, water charges collected and remitted without markup were treated as pure agent transactions and excludible from taxable value. As the association had been filing ST-3 returns, paying tax, and entertained a bona fide belief regarding exclusion of these charges, invocation of the extended limitation period was held unsustainable. Case-Laws Service Tax Thu, 09 Oct 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782781