2025 (6) TMI 596

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....ECHNICAL ) Ms. Priyanka Goel, Advocate for the appellant Shri S. K. Meena, Authorised Representative for the respondent ORDER BINU TAMTA : 1. Challenge in this appeal is to the Order-in Appeal No. 368(CRM)ST/JPR/2019 dated 07/17.10.2019 confirming the demand of service tax by including the amount of notional interest on the security deposits collected by the appellant. The appellant....

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....0-51404/2023 dated 29.09.2023. The learned Authorised Representative for the Department has also very fairly agreed that the present appeal is covered by the decision of the Tribunal as referred to by the learned counsel for the appellant. 4. We find that the Tribunal decided the issue raised in the batch of 5 appeals, as to whether the Department could have charged service tax on the notional ....

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....e to Service Tax. The consideration for renting of the immovable property is the amount agreed upon between the parties and on this amount the appellant is discharging Service Tax liability. The security deposit is taken for a different purpose altogether. It is to provide for a security in case of default in rent by the lessee or default in payment of utility charges or for damages, if any, cause....

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....ation Rules, unless the department shows that the deposit taken has influenced the sale price, notional interest cannot be automatically included in the sale price for the purpose of levy. In the absence of a provision in law providing for a notional addition to the value/price charged, the question of adding notional interest on the security deposit as a consideration received for the services re....