Reimbursements on electricity expenses from occupants chargeable to Service tax

Srijan Realty (P) Ltd. Vs. Commissioner of Service Tax (Kolkata High Court)

Recently, the issue of levibility of Service Tax on reimbursements on electricity expenses received from the occupants of a complex came before a Single Member Bench of the Hon’ble Calcutta High Court, wherein the Hon’ble High Court has upheld the levy of Service Tax on such transactions. [Srijan Realty (P) Ltd. v/s Commissioner of Service Tax, Service Tax Commissionerate II – Kolkata & Ors. W.P. No. 770 of 2015].

Issue: Whether the supply of electricity by the petitioner to the occupiers of “Galaxy Mall”, a commercial complex, is a service exigible to Service Tax under the Finance Act, 1994 (“the Finance Act”).

Facts & Background:

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