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TMI Blog2013 (7) TMI 669X X X X Extracts X X X X X X X X Extracts X X X X ..... t free security deposit has influenced the consideration received for renting and it is only a presumption on the part of the revenue - the appellant had followed the practice of taking security deposit for the premises rented out on lease basis was common throughout the country and the amount of security deposit taken also varies from place to place and also depends on the property whether it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce provider engaged in various services including renting of immovable property of commercial construction undertaken by them. The appellant has been discharging service tax liability on the rent received from the lessees. The appellant has also taken security deposit from the lessees. The department was of the view that notional interest on the security deposit is also a consideration for the ren ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or any damage done to the properties. The security deposit has no nexus either with the area of the property rented out. It is charged as six months rent and, therefore, it cannot be said that the notional interest has influenced the consideration received for the services rendered. He relies on the decision of the Hon'ble apex court in the case of CCE, Mumbai-III vs. ISPL Industries Ltd. 2003 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carefully considered the submissions made by both the sides. 5.1 The practice of taking security deposit for the premises rented out on lease basis is common throughout the country and the amount of security deposit taken also varies from place to place and also depends on the property, whether it is for commercial or residential purpose. There is a general practice prevalent throughout the cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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