2018 (8) TMI 622

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....espondent: Rep by Sh. Vivek Pandey, DR ORDER PER ANIL CHOUDHARY: The issue in this appeal is, whether Service Tax has been rightly demanded on the amount of security deposit made by the tenant to the Appellant/landlord. 2. The brief facts of the case are that, the Appellant gave on rent premises for office use w.e.f. April 2005 for monthly rent of Rs. 4000 (Rs.48,000/- per annum). The ....

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....ul vacant possession of the tenanted premises. 3. Vide a show cause notice dated 17.04.2012, Service Tax of Rs. 1,03,000/- was demanded on the total deposited amount of Rs. 10,00,000/- for the period 2010-11. The show cause notice was adjudicated on contest and the proposed demand was confirmed along with equal amount of penalty under Section 78 and also interest. On appeal, the Commissioner (A....

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.... that the demand raised in the impugned order is erroneous being made on the refundable security deposit. Such refundable amount cannot form consideration as defined under Section 67. Further, we find that the rent is defined in the agreement and as such demand, as made in the impugned order, is not tenable. Accordingly, we confirm the demand of Service Tax on the amount of annual rent of Rs. 84,0....