Case Law Details
L & T Infocity Ltd Vs Commissioner of Central Excise & Service Tax (CESTAT Hyderabad)
CESTAT Hyderabad held that parking charges collected for providing parking space is liable for inclusion in the value of Management, Maintenance or Repair services and accordingly, service tax is payable on the same.
Facts- The Appellants are provides the service of ‘renting of immovable property’ and maintenance of common areas of the building under separate agreements.
Taking a view that the amounts collected by the Appellant towards – electricity, diesel charges for DG sets, water and parking charges would be liable for service tax under the category of ‘Management, Maintenance or Repair Service’, SCN dated 15.10.2012 was issued for the period 2007-08 to 2011-12, demanding service tax of Rs. 10,76,89,485/- towards (i) electricity charges, (ii) diesel charges and (iii) water charges received by the Appellants from their tenants/occupants as reimbursable expenditure and (iv) Rs.86,13,978/- towards non-inclusion of parking charges in the value of taxable services.
The issue involved in the Appeals is whether the service tax is payable on reimbursable expenses, amounts collected towards provision of water, electricity, diesel and parking charges under the category of ‘Management, Maintenance or Repair services’.
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