2018 (8) TMI 247

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.... Sh. Sanjay Jain, AR for the Respondent ORDER Per: V. Padmanabhan: The present appeal is filed by the appellant against the Order-in-Appeal No. 86(SLM)ST/JPR-I/2014 dated 03/05.12.2014 passed by the Commissioner (Appeals), Central Excise & Customs, Jaipur. 2. The appellant entered into an agreement dated 24.08.2009 with M/s Vibrant Academy (India) Pvt. Limited, Kota to lease out and....

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....ccordingly, demand of service tax was ordered by the lower authorities alongwith interest and penalties. Aggrieved by the decision, the present appeal has been filed. 3. With the above background, we heard Ms. Rinki Arora, ld. Advocate for the appellant. She submitted that the lumpsum amounts were received by the appellant as part of the lease agreement. Such amounts were received as interest f....

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....contention of the appellant that the security deposit was an interest free deposit to take care of damages. 5. After hearing both sides and on perusal of record, we note that the transaction between the appellant and M/s Vibrant Academy (India) Pvt. Limited has been crystalised in the form of the lease agreement dated 28.04.2009. In terms of the above lease agreement, in particular para 4, the ....

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....n the rent, the liability for the tax also extends to the notional interest accruing on the lumpsum deposit received by the appellant from the lessee. We find that such a stand is not justified particularly in view of the decision of the Tribunal in the case of Murli Realtors Pvt. Ltd. (supra) cited by the appellant in their support. The Tribunal observed as follows: "6.3 In the case before us,....