2026 (4) TMI 1431

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....selves to adjourn the matter any further, and decide the appeal in accordance of directions of Hon'ble Supreme Court in the case of Balaji Steel Rolling Mills versus Commissioner of Central Excise, Customs, reported as 2014 (310) ELT 209. 2. We have heard the learned DR. 3. It is mentioned that on last date of hearing, the issue was wrongly mentioned to be recorded relating to the amount of royalty. The issue in the present appeal is with respect to the taxability amount of notional interest gained by the appellant on the amount of refundable security deposit received while renting out the safe deposit lockers. 4. Having heard and perusing the appeal memo, we observe that the appellant was engaged in providing services of '....

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....o. 79-80/2021 dated 17.02.2021. Being aggrieved, the present appeal has been filed. 5. We have perused the contention of the appellant mentioned in Para 4 of the Grounds of Appeal in the Appeal Memo. It is mentioned as below:- "4. there is no dispute about the fact that the notional Interest earned by the Notices on the amount of Security deposits received from the Customers did not have any effect on the Annual Rent charges for renting out Safety deposit Lockers and while fixing the rent charges for renting out Safety Deposit Lockers, the amount of Notional Interest to be earned by the Notices was not taken into consideration. In view of this fact, the Notices were under a bonafide belief that as the said amount of Notional Int....

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....This decision has relied upon the earlier decision in the case of Murli Realtors Private Limited versus Commissioner of Central Excise, Pune-III reported as 2015 (37) STR 618 (Tri.-Bom) wherein it was held as follows:- "6.1 Section 67 of the Act, reproduced in para 4.1 above, clearly provides that only the consideration received in money for the service rendered is leviable 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 cha....