2018 (3) TMI 268

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....s for the period 1.6.2007 onwards for payment of service tax under Renting of Immovable Property Services. Further, they collected operation and maintenance charges and was not discharging service tax on such charges collected by them for the period 16.6.2005 to 31.5.2007. Show cause notice was issued demanding differential amount of service tax along with interest and also for imposing penalties. After due process of law, the original authority confirmed the demand of Rs. 25,31,822/- being the service tax for the period June 2005 to January 2008 along with interest and imposed equal penalty under Section 78 with option to pay reduced penalty under proviso to the said Section. In appeal, Commissioner (Appeals) set aside the demand, interest....

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....x under the said category on the amounts collected for maintenance service. 3. The ld. counsel Ms. Disha Gursahaney appeared on behalf of the respondents and argued the matter. She submitted that the department has raised the demand on three sets of charges. Rs. 14,53,834/- has been confirmed on operation and maintenance charges for the period 16.6.2005 to 31.5.2007; an amount of Rs. 2,67,789/- has been confirmed being the electricity charges collected and paid by the respondents. Further, an amount of Rs. 8,10,199/- has been demanded being air-condition charges collected and paid by the respondents for the period June 2007 to January 2008. She submitted that the electricity charges and air-conditioning charges are nothing actual charges....

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....ct of electricity charges and air-conditioning charges being reimbursable expenses, we are of the view that these cannot be included in the total value of taxable services. For this we take sustenance from the decision of the Tribunal vide Final Order No. 41806 & 41807/2017 dated 28.8.2017 in the case of M/s. Plaza Maintenance and Services Ltd. This issue is found against the Revenue, and we uphold the order passed by Commissioner (Appeals) on setting aside demand on electricity charges and air-conditioning charges. 6. On perusal of records, as per lease deed, the respondent is under obligation to maintain common areas and provide various amenities. The amount collected as operation and maintenance charges represents charges for maintena....