Renting of Immovable Property: Service tax not Leviable on One-Time Non-Refundable Deposit

Kagal Nagar Parishad Vs Commissioner of Central Excise (CESTAT Mumbai) Revenue sought to tax the one time premium deposit, which is not refundable under the head of renting of immovable property service considering the same as rent. We find that there is a separate charge for the rent, which alone is taxable, the onetime premium charges is non-refundable deposit, it is called as one time premium and not part of rent. Therefore, the same is not taxable. FULL TEXT OF THE CESTAT ORDER IS AS FOLLOWS:- The issue involved in the present case is that in the course of leasing of the premises of Govern...