2013 (12) TMI 794

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....ent, Maintenance & Repair Services' along with interest thereon and penalty has also been imposed under Sections 76 and 78 of the Finance Act, 1994. 2. The brief facts are that the appellant (PML for short) has set up a commercial complex (Mall) and has given premises on licence and leave basis to various licencees. During the period under consideration 1.10.2005 to 31.5.2007, the appellant was registered with the Service Tax department for the following category of services: -    (a) Mandap Keeper Services    (b) 'Management, Maintenance & Repair Services' Subsequently, w.e.f. 1.6.2007 it was registered under the category of 'Renting of Immovable Property Services' and accordingly paying tax for this categor....

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....d by the Audit party that the appellant during the period 1.5.2006 to 31.5.2007 have not paid the Service Tax on the following services on the amounts collected from their licensee:- Sl.No. Name of Charge Demand (Rs.) 1. Amenities Charges 1,83,83,605/- 2 Promotional & Marketing Charges 8,41,653/- 3. Dish Antenna Charges 61,962/- 4. Business Centre Charges 2,35,372/-   Total 1,95,22,592/- Thus, a demand was proposed under the category of Business Support Services amounting to Rs.1,95,22,592/-. 3.3 Further, under the heading 'Management, Maintenance & Repair Services', for the same period 01.10.2005 to 31.05.2007 the following amount was alleged to be recoverable:- Sl.No. ....

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....d under Business Support Services is concerned, charges for maintenance in respect of providing furniture, fixture and amenities inside the unit let out under separate agreement with the licensee, which is co-existence and co-terminus with the license/rental agreement. So far as 'Promotional and Marketing charges' are concerned, the same are collected on 'per square feet' basis in the license agreement for meeting the overall promotion of the mall. So far as 'Dish Antenna charges' are concerned, it is charged in license agreement for providing space on terrace for installation of the Dish Antenna. And, Business Centre charges for letting out furnished and equipped unit in rental agreement, which is nothing but letting out charges or rental ....

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....ng, security, air conditioner, logistic etc. to the common area including lifts, lobbies, staircase, escalators, toilets etc. for the bona fide enjoyment of licensed unit. There is no scope of management, maintenance or repairs involved. Further, parking maintenance or upkeeping charges are for use of the parking place to their licensee and not for maintenance of the parking area. 4.4 The appellant placed reliance on the ruling of the Apex Court in the case of Karnani Properties Ltd. vs. Miss Augustine, AIR 1957 SC 309 wherein it was held that maintenance & amenity charges are in the nature of rent. In the case of the appellant's also, all the aforementioned charges are collected on per square feet basis on the area occupied or made avai....