TaxTMI 
TaxTMI 
2025 (7) TMI 2040
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....of the Finance Act, 1994. The impugned order also denied the cenvat credit wrongly availed on 'Banking and Other Financial Service' for the period April 2009 to March 2011. Aggrieved by this order, the appellant is in appeal before us. 2. The Learned Chartered Accountant for the appellant submitted that originally the commercial property was owned by firm "Shyamraju and Co." and was leased to Dell Ltd. Subsequently, the ownership of the property was transferred to the appellant and accordingly, a fresh lease agreement was executed by the appellant post January 2008. The table below provides the initially leased area and reassessed area along with the details of the lease deeds. Table - I Sl. No. Floor Description Area (Sq.ft.) declared in original Lease Deed Area (Sq.ft.) declared in renewed Lease Deed Difference in area (Sq. Ft.) 1 Lower basement 95,878 1,01,843 -5,965 2 Upper basement 95,180 98,470 -3,290 3 Ground Floor 96,235 91,925 4,310 4 First Floor 94,665 78,581 16,084 5 Second Floor 90,490 86,014 4,476 6 Third Floor 92,980 82,405 10,575 7 Fourt....
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....e for cenvat credit on the service tax paid on the processing charges for a loan not related to the present business of the appellant. Hence, the impugned order needs to be sustained. 4. Heard both sides. The period of dispute is from January 2008 to March 2011. The Commissioner in the impugned order based on the Table-I reproduced above holds that 'the difference in the floor area between the original lease deeds and renewed deeds has not been satisfactorily explained by the assessee apart from saying that there has been a negotiation of the leasable area. Further, the fresh lease deeds also do not indicate any such renegotiation. ..................Neither is there any evidence to substantiate the claim of the assessee that the area leased out has been renegotiated by the lessor and lessee. .............I therefore, hold that the area of 31,408 sq. ft. has escaped assessment'. Based on the above observation, the Commissioner has demanded the service tax of Rs.1,06,78,624/- on the rental value of Rs.9,72,18,051/- for the period January 2008 to March 2011. We find that it is not under dispute that there are four (4) Lease Deeds; two (2) deeds are dated 29.08.2008 and other 2 deed....
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....xable service shall include any amount received towards the taxable service before, during or after provision of such service. (4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed. Therefore, in view of the above provisions, the question of demanding service tax on the differential area without any evidence of consideration received cannot be sustained. 4.2 With regard to cenvat credit for the period April 2009 to March 2011, there is no dispute of the fact that the appellant had taken a loan from Karnataka Bank Ltd., HDFC Bank and Allahabad Bank for the purpose of taking over the existing term loans of the company and also for the other project purposes. The Commissioner in the impugned order had observed that Rs.190.00 crores was sought from Allahabad Bank wherein the outstanding loan amount of Rs.96.96 crores from HDFC Bank was taken over by Allahabad Bank and balance was for 'other project purpose'. As rightly observed by the Commissioner, there is nothing on record to show that the service tax paid on processing fees of bank loans has anything to do with the renting of immovable propert....
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....its Intention to renew the lease. The Lessor and the Lessee, upon receipt of such notice, shall within 45 days thereof execute and register a fresh (duly stamped) lease deed for the renewed term on the same terms and conditions as contained in this Lease Deed. In the event that the parties, do not exercise the option to renew the Lease, the same shall be deemed to have been determined by efflux of time and the Lessee shall hand over the vacant possession of the Schedule B Property to the Lessor. b) In the event of exercising its option to renew the lease, as provided In Clause 2(a) hereof, Lessee shall be entitled to terminate any such renewed lease deed, without cause, by Issuing two months notice to the Lessor. 3. RENT: (a) The: Lessee shall pay to the Lessor the following towards the lease rentals: (hereinafter referred to as the 'Rent') for the Schedule B Property effect from the respective rent commencement dates (hereinafter be referred to as the "Rent Commencement Date') mentioned below : Area (in sq. ft.) Monthly Rent per sq. ft. (Rs.) Total Rent per month (Rs-) Rent Commencement date Ground Floor 22114 38.41 849,398.74 1st April 2007 First Flo....