9911796707
TMI Blog2013 (12) TMI 854X X X X Extracts X X X X X X X X Extracts X X X X ..... nts are engaged in providing services of renting of immovable property. Renting of immovable property is chargeable to service tax under the provisions of Section 65(90a) of the Finance Act. The appellants are paying appropriate service tax in respect of rent received from the tenants. Show-cause notices were issued to the appellants on the ground that the appellants had received certain amounts as reimbursement of electricity charges from the tenants. Show-cause notices were issued invoked the provisions of Rule 5 of Service Tax (Determination of Value) Rules, 2006 which provides if there are expenditure or costs are incurred by the service provider in the course of providing taxable service, all such expenditure or costs shall be treated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are nothing to do with the service of renting of immovable property. The charges are to be paid by the tenants directly to the Electricity Board or where the electricity is supplied by the appellants the tenants are to pay on actual consumption. The back up is available where the tenants opted to avail such facility provided by the landlord. 6. The contention of the appellants is that in the case of M/s. Panchshil Tech Park Pvt. Ltd. the adjudicating authority has dropped the proceedings initiated which were on the same ground vide Order-in-Original No.22-23-24/P.III/ST/ Commr /2011-12 dated 28.11.2011 by the Commissioner of Central Excise, Pune.III . The appellants also received information under the RTI Act that the Revenue has accepte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also as provider of immovable property service. The appellants are providing bunch of services such as renting of immovable property, maintenance and repair services and provides electricity. The main activity of the appellants is renting of immovable property. Hence all the considerations received in respect of renting of immovable property including electricity charges are chargeable to service tax as provider of renting of immovable property. The Revenue also submitted that as per the Lease Agreement, the landlord has to provide electricity load to the tenants and the appellants also undertook to 100% generator back up and the tenants have to pay to the landlord a specific amount to be deposited to the appellants account in respect of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Commissioner of Central Excise Pune.III vide Order-in-Original dated 28.11.2011 relied upon by the appellants dropped the proceedings which were initiated on the same ground in the case of M/s. Panchshil Tech Park Ltd. The Commissioner of Central Excise in the adjudication order held that electricity is goods and chargeable to Nil excise duty. The decision of the adjudicating authority is accepted by the Revenue as per the communication dated 26.9.2012 by the Commissioner of Central Excise, Pune.III . The present appellants are also under the jurisdiction of Pune III Commissionerate . 10. In view of the above discussion, we find merit in the contention of the appellants that the electricity charges collected from the tenants cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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