TaxTMI 
TaxTMI 
2025 (10) TMI 454
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....ed 27.07.2015 passed by the Commissioner of Service Tax (Appeals-I), Chennai. 2. Appellants are engaged in renting of immovable property service. The appellant has been regularly paying service tax and also has been filing service tax returns with the department. On review of accounts and settlement with the parties, it was noticed that the Electricity deposits paid by the appellant/tenants in earlier years, had not been shown separately in the books of accounts. Certain entries were passed resulting in reversal of prior year expenses and accounted under Misc. Income. 3. The appellants were issued with a Show Cause Notice No.295/2011 dated 29.08.2011 seeking to demand service tax of Rs.8,83,519/- on reversal of book entries resulting ....
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....eous Income in the year 2009-10. ii. Service tax is chargeable on the income/consideration received against providing the taxable service under sec.67 of the Finance Act 1994. The appellant had acquired property business from SSI P Ltd/AGS Holding P Ltd in 2008. The books of accounts at the time of takeover, did not provide the details of deposits with the Government authorities/Electricity Board. iii. The appellant had noticed that a deposit with Electricity Board (Rs.12,35,139/-) was not captured properly and the same was accounted by debiting Electricity Deposit and crediting the 'Misc. Income Head'. iv. The amount accounted is not to be equated with the consideration towards 'renting of immovable p....
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....vidence available on appeal records and the case laws relied upon. 10. The issues that arise for determination in this appeal are: - i. Whether the appellant is liable to pay service tax on the miscellaneous income shown in their financial records and whether it is related to the service of Renting of Immovable Property? and, ii. Whether the extended period can be invoked and penalty leviable or not in the facts and circumstances of this appeal? 11. A perusal of the appellate records indicate that appellant was issued with a Show Cause Notice seeking to demand service tax of Rs.8,83,519/- after noticing miscellaneous income shown in the financial records of the appellant. The appellant replied that they have acquired....
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....he decisions rendered by the Tribunal in the case of Team HR Services Private Limited vs. Commissioner of Central GST, New Delhi vide Final Order No.51646/2023 dated 15.12.2023 and VITP Private Limited vs. Commissioner of Central Tax, Hyderabad IV & others vide Final Order No. A/30070-30073/2022 dated 08.07 2022 wherein it was held that refundable security deposits are returned to the customers at the end of the lease period with no interest in terms of Lease Deed entered into and so cannot be treated as a consideration for renting/leasing of immovable property services. 14. In the case of Samir Rajendra Shag Vs. Commissioner of Central Excise, Kolhapur [2015 (37) STR 154 (Tri.-Mumbai)] wherein it was held as follows: - "7. The ....
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....ges or for damages not being a consideration for leasing of the property, cannot be subjected to service tax. 16. As if the demands are made on book entries / miscellaneous income and other deposits, we find that the same is not a consideration towards renting of immovable property service. 17. Considering the explanation given by the appellant regarding the necessity to make entries resulting in showing some miscellaneous income in their financial records, is not related to provision of immovable property service and as such, the demand of service tax raised is not sustainable. Amounts collected are informed to be deposits with the Electricity Board including tenants' deposits, security deposits taken from the tenants toward the dama....