Case Law Details
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 Government local authority, they keep a non-refundable deposit, which is called as one time premium of Salami, which is not refundable, whether the said deposit is liable for Service Tax under the head of renting of immovable property.
2. Shri V.B. Gaikwad, learned Counsel appearing on behalf of the appellant submits that this issue is no longer res integra as the same has been decided for such non-refundable deposit cannot be taxed towards the service of renting of immovable property. He placed reliance on the following judgments: –
Please become a Premium member. If you are already a Premium member, login here to access the full content.
