No service tax on notional interest of security deposit

CA Urvashi Porwal Brief of the Case In the case of The  Lake Palace Hotel and Motels P Ltd. vs. Commissioner of Central Excise Jaipur, it was held that service tax is not payable on the notional interest accrued on the security deposit received on providing immovable property on rent. Facts of the Case The facts of the case are that the appellant is owner of  land and building which has been rented out by them to M/s. Indian Hotels Company Ltd. for renting the hotel and the said building  on  profit sharing basis.   The appellant also received the security deposit of Rs.20 crores.   Re...