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TMI Blog2018 (10) TMI 647X X X X Extracts X X X X X X X X Extracts X X X X ..... of interest that should be taken into consideration and also there is no provision of law to add notional interest on the interest free security deposit to the rent received by the service provider for the purpose of levy of service tax. Appeal allowed - decided in favor of appellant. - APPEAL No. ST/50256/2015-CU[DB] - ST/A/72069/2018-CU[DB] - Dated:- 23-8-2018 - Mrs. Archana Wadhwa, Member (Judicial) And Mr. Anil G. Shakkarwar, Member (Technical) Ms Stuti Saggi (Advocate) for Appellant Shri Pawan Kumar Singh (Supdt) AR for Respondent ORDER Per: Anil G. Shakkarwar Present appeal is directed against the Order-in-Original No. 12/ST/COMMR./NOIDA/2014-15 dated 10.10.2014 passed by Commissioner of Customs, Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel for the appellant has submitted that the interest free deposit has not influenced the rate of rent and that there was no such allegation in the show cause notice. She has further stated that the issue is already settled through Final Order passed by this Tribunal in the case of Murli Realtors Pvt. Ltd. vs. Commissioner of Central Excise, Pune-III reported at 2015 (37) STR 618 (Tri.-Mumbai). She has submitted that the Tribunal in the said case has given a clear finding that in the absence of evidence showing that security deposits did not influence the rent and in the absence of any provision of law allowing addition of such notional interest in the assessable value it was held that the notional interest cannot be treated as assessable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that can be brought under Service Tax and nothing more and the quantification of the value of service can, therefore, never exceed the gross amount charged by the service provider for the service provided by him. The Hon ble Apex Court in the case of ISPL Industries Ltd. (supra) also considered a similar question and held as follows: 11. It is clear that the mere fact of making an interest free advance by a buyer to the manufacturer, by itself will not be a sufficient ground to reload the assessable value with notional interest. It would be necessary for the revenue to show that such advance has influenced in the lowering of the price and that it is not depicting the normal price of the goods. There may be different reasons for takin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Rules of 2003 referred to above. As illustration 2, it talks of evidence to show that interest free advance has resulted in lowering of the prices. The departmental circulars and the amendments in the Rules at the relevant time and subsequently too, do not envisage of any presumption to be drawn by mere fact of interest free advance by the buyer to the manufacturer. It requires proof and evidence to show that fixation of price has been influenced on the lower side by such a transaction of interest free advance. 12. In the appeals before us, neither there is any evidence or proof on the record nor it is the case of the appellant on facts, that the interest free advance has influenced the price and the price lower that the normal pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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