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TMI Blog2016 (1) TMI 1062X X X X Extracts X X X X X X X X Extracts X X X X ..... f immovable property on profit sharing basis - demand of service tax on renting including on notional interest received on the security deposit made with the appellants. - Held that:- As the issue has already been settled in appellants own case for earlier period, that the appellant is not liable to pay service tax under the category of renting of immovable property service as leasing out the prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sit made with the appellants. 2. Revenue has also filed an appeal for imposing penalty under section 76 of the Finance Act, 1994. 3. The facts of the case are that the appellant is owner of land and building which has been rented out by them to M/s. Indian Hotels Company Ltd. for renting the hotel and the said building on profit sharing basis. The appellant also received the security deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the appellant submits that renting of immovable property to Indian Hotel Company Ltd. is outside the ambit of taxable service under section 65 (105) (zzz) of the Finance Act, 1994. Therefore, the appellant is not liable to pay service tax. He also submits that in their own case for the earlier period as reported in [2014-TIOL-2156-CESTAT-DEL] this Tribunal held that appellants are not liable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal as well as stay application has been taken up together for disposal with the consent of both the sides. 7. As the issue has already been settled in appellants own case for earlier period, that the appellant is not liable to pay service tax under the category of renting of immovable property service as leasing out the property to Hotel under the deemed provision of section 65 (105)(z ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the appellant is not required to pay service tax on notional interest on security deposit under the category of renting of immovable property service. 8. We hold that appellant are not liable to pay service tax on the notional interest accrued on the security deposit. In these terms, impugned order is set aside, appeal of the assessee is allowed with consequential relief , if any. Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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