No Service Tax on Notional Interest on Locker Deposits: CESTAT Delhi

Ratna Sagar Safe Deposit Vaults Pvt. Ltd Vs Commissioner of CGST & Central Excise (CESTAT Delhi) Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Delhi has delivered a significant ruling, asserting that notional interest calculated on interest-free security deposits collected for safe deposit locker rentals cannot be subjected to service tax. This decision, in the case of Ratna Sagar Safe Deposit Vaults Pvt. Ltd Vs Commissioner of CGST & Central Excise, quashes a demand for service tax amounting to Rs. 23,45,350/- for the period April 2012 to March 2016. The Tribunal’...