2019 (3) TMI 184

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....395 /- along with interest, Equal penalty has also been imposed under Section 78 of Finance Act, 1994. 2. Appellant is engaged in providing services relating to maintenance and upkeep of society complexes including maintenance of common area, guarding the complex, maintains various facilities available in the complex etc. Appellant has entered into an agreement with buyers of flats for maintenance and upkeep of society complexes including maintenance of common area, guarding the complex, maintenance of various facilities available in the complex etc. Appellant is discharging the service tax on the maintenance charges received from the buyers. On the said security deposit Appellant has not discharged service tax liability. Department was ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ard both sides and perused the records. The main issue to be decided in the present case is as to whether notional interest on 'maintenance refundable security deposit' is to be added in the value of maintenance service or not? It is an admitted fact that security deposit in the present case is refundable. We find that issue of addition of Notional interest on refundable security deposit in the value of service has already been settled by the Tribunal in the case of MURLI RELATORS PRIVATE LIMITED v. COMMISSIONER OF CENTRAL EXCISE, 2014-TIOL-1728-CESTAT-MUM. In the said decision the Tribunal held as under:- "6.1 Section 76 of the Act, reproduced in para 4.1 above, clearly provides that only the consideration received in money for the serv....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....harged, the question of adding notional interest on the security deposit as a consideration received for the services rendered cannot be sustained and we hold accordingly." 6. In the case of Kalani Infrastructure Pvt. Ltd. 2018 (8) TMI 247 the Tribunal also took the same view and held as under. 6. The case of the department is that in addition to the service tax payable on rent, the liability for the tax also extends to the notional interest accuring on the lumsum 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 Relators Pvt. Ltd. (supra) cited by the Appellant in their support. The tribunal observed as follows: 6.....