2016 (1) TMI 1062

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.... ASHOK JINDAL, MEMBER (JUDICIAL) AND MR. R K SINGH, MEMBER (TECHNICAL) For the Petitioner : Shri Rachit Jain, Advocate For the Respondent : Shri Ranjan Khanna, AR ORDER PER ASHOK JINDAL : The appellant is in appeal along with application for stay against the demand confirmed against them on account of renting of immovable property service and notional interest received on the security depos....

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.... is liable to pay the service tax. In these set of facts, a show cause notice was issued to the appellant for the period 2010-2011 and 2011-2012 to demand service tax as discussed above. The matter was adjudicated, demand of service tax was confirmed along with interest and various penalties were imposed. Aggrieved from the said order, appellant was before us. 4. Learned Counsel for the appellant....

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....he learned Counsel and submits that at the time of leasing out the property to the Indian Hotel Company Ltd., it was only of immovable property and not a hotel. Therefore, the appellant is liable to pay service tax under the category of renting of immovable property service. 6. After hearing both the sides, we find that appeal itself can be disposed of at this stage. Therefore, the appeal as well....

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.... both sides, we find that this issue has been extensively considered by this Tribunal in the case of Magarpatta Township Developers & Construction Co. (supra), wherein this Tribunal held that notional interest on security deposit cannot be added to rent agreed upon between the parties for the purpose of levy of service tax for renting of immovable property. Therefore, we hold that the appellant is....