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TMI Blog2016 (12) TMI 484X X X X Extracts X X X X X X X X Extracts X X X X ..... ax liability on the output services under the category of renting of immovable property , we do not find any reason for denial of CENVAT credit on various input and inputs services used in relation to building of such commercial property. As regards the demand of Service Tax liability on the interest-free security deposit, we find that the adjudicating authority has calculated notional interest payable on such interest-free security deposit and related the notional interest as received in relation to renting of immovable property services. We are not in agreement with such finding of the adjudicating authority, for the reason that an agreement between the appellant and his customer provides for interest free security deposit, which is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Commissioner of Service Tax, Mumbai-II. 2. The relevant facts that arise for consideration are appellant herein had constructed a commercial premises for renting of the same to various customers. For construction of such premises, appellant had availed various services on which Service Tax liability was discharged by the service provider and appellant availed CENVAT credit of the same; appellant had taken interest-free security deposit from various customer for giving space on rent; appellant forfeited the amount of advance given by the customers on relegation of the contract by the customer. Revenue authorities are of the view that appellant cannot avail CENVAT credit of various inputs services which are consumed for constructio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -consideration by the adjudicating authority, as the adjudicating authority has not given any finding on the factual matrix on the various detailed submission made during the personal hearing. 4. Learned departmental representative reiterates the findings of the lower authorities. 5. On consideration of the submissions made by both sides and perusal of records, we find that the issue needs to be addressed individually and accordingly we do so. 5.1 As regards the denial of CENVAT credit of input and inputs services used in relation to the building of the property which was to be used by the appellant for the commercial purpose by leased out the area of such commercial property, we find that there is no dispute that the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d damages for rendition of the customer in not taking the possession of the premises contracted for, we do agree that Service Tax liability on such amount forfeited as liquidated damages does not arises. Similar issue came up before Hon'ble Apex Court in the case of United Breweries Ltd. (supra). In the said case United Breweries Ltd. (supra) the issue was of security deposit of the bottles which was not returned which was forfeited by the said Company. We find the ratio of the judgment can be applicable in the case in hand which is in paragraph 19 of the judgment which we respectfully reproduce. We are unable to uphold this contention. Whether the bottles and the crates were sold along with the beer or not will depend upon the int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perly availed on amount of ₹ 3.30 crores (approx), we find that the issue needs reconsideration by the adjudicating authority as various documents produced before us as also before the adjudicating authority, in our opinion were not considered in proper prospective and no findings are given; without expressing any opinion on the merits of this issue, we set aside the finding of the adjudicating authority on this point and remit this point for redetermination by the adjudicating authority after following the principle of natural of justice. 6. In sum, we allow the appeal of the appellant in respect of point no. 1, 2 3 and in respect of paragraph no. 5.1, 5.2 5.3 and are regard issue paragraph 5.4, we remand the matter to the adj ..... X X X X Extracts X X X X X X X X Extracts X X X X
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