Service tax on notional interest accrued on security deposits for renting of immovable property: Scope and liability:
This issue has been extensively considered by this Tribunal in the case of Magarpatta Township Developers & Construction Co. Vide order no. A/1366-1374/14/CSTB/C-1 dated 16.07.2014, wherein this Tribunal held that notional interest on security deposit cannot be added to rent agreed upon between the parties for the purpose of levy of service tax for renting of immovable property.(Para 5).
Business Auxillery Services: Demand:
The applicants are selling the JP miles to their business partners and business partner is providing JP Miles free of cost to their customers for availing free tickets from the applicant. In this case the applicant is not providing any business service to their business partners and remuneration received towards sales of JP Miles by the applicant is not covered under the Business Auxiliary Service. For the remaining demands the applicant has paid substantial amount. Pre-deposit waived.(Para 6)
Waiver of pre-deposit: Stay: Scope:
Show cause notice was dropped by the adjudicating authority, which was challenged by the Revenue before the Commissioner (Appeals), who allowed the appeal of the Revenue. Therefore, the applicant cannot be asked to make a pre-deposit at this stage.(Para 4).
Appeal against the interim order and non-compliance to provisions of Section 35F: Scope:
As the appeal against the interim order is not maintainable, the said appeal is dismissed as not maintainable before this Tribunal. In this case the appellant has produced the financial records before the Adjudicating Authority but same has not been considered in their case. Matter remanded (Para 5).
Appeal disposed off.
Business Auxiliary Service: Demand - Appellant imported the goods and sold the same on high sea sale basis: Whether additional handling charges and the facilitation charges are leviable to service tax: Scope:
The appellant has imported the impugned goods in their own account and in their own name and thereafter they have sold goods to ZIL. In these circumstances, whatever expenses have been incurred before transfer of the goods, form part of the sale price of the impugned goods. Relying on the decision of Nahar Industrial Enterprises STO 2010 P&H 868, the appellant is paying these charges for their own purposes. Therefore, same cannot form part of the service tax liability(Para 6).