2025 (7) TMI 841

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....IKA R. PRIYA, MEMBER (TECHNICAL) APPEARANCE: For the Appellant: Ms. Neha Somani, Chartered Accountant. For the Respondent: Shri Anand Narayan, Authorised Representative. BINU TAMTA: 1. The issue for consideration is whether the Department could have charged service tax on the notional interest towards „security deposit‟ taken by the appellant against the renting of safe ....

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....ng and other Financial Services". The show cause notice was confirmed by the Adjudicating Authority holding that the assessee did not pay service tax amounting to Rs. 6,10,238/- on the total value of taxable service, which includes the amount on account of additional consideration and hence the said amount is chargeable to service tax. The appeal filed by the appellant was rejected by the impugned....

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....of the Immovable Property" agreed upon between the parties, is leviable to service tax and the appellant is discharging its liability. The relevant para is quoted below :- "6.1 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, caused to ....

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....uation 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 r....