9911796707
TMI Blog2016 (10) TMI 1098X X X X Extracts X X X X X X X X Extracts X X X X ..... e only at the time of detailed final hearing when both sides would be given opportunity for detailed arguments. Under the circumstances, we are of the view that the applicant should be made to deposit around 10% of the total service tax demanded in the impugned order. The applicant are directed to deposit an amount of ₹ 50,00,000/- within a period of eight weeks - Subject to this pre-deposit, the balance amount of service tax demanded as well as the interest and penalties would stand stayed until disposal of the appeal. - ST/21744/2014-DB - Stay Order No. 20496/2016 - Dated:- 26-10-2016 - Shri S.S. Garg, Member (J) and V. Padmanabhan, Member (T) Shri Karthikeyan L.S., Advocate, for the Appellant. Shri Mohammed Yousuf, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f interests at the rate prevailing from time to time of a nationalised bank. Such an interest will be utilised for meeting the cost of maintenance and upkeep purposes. The Revenue authorities did not accept the value of the taxable services adopted by the applicant for payment of service tax on the service of maintenance or repair. The applicants have found to have received an amount of about ₹ 317 crores by way of maintenance deposits and revenue took the view that if such funds were not available to the applicants by way of deposits for carrying out maintenance or repair activities, they would have had to take a loan of the same amount for which they would have had to pay interest at the commercial rate of 14.75%. Accordingly, they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hand submitted that it is an admitted fact that the maintenance deposits have been collected by the applicant in terms of an agreement with the buyers of the apartment for the specific purpose of maintenance of the immovable property. These specifically satisfy the requirement of Section 65(54) of the Finance Act, 1994 which has defined maintenance or repair service w.e.f. 16-6-2005. He also supported the view adopted by the lower authorities for quantification of the demand. 7. Perusal of the records of the case reveal that the applicant, who is a major builder of residential complex, has the practice of collecting maintenance deposits of amounts to the tune of ₹ 2 lakhs per apartment. These amounts are paid by the buyers as and ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
