2018 (12) TMI 256

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..... the appellants were providing service of Renting of Immovable Property and were registered for payment of Service Tax. On 09.11.2005 the appellants who owned industrial property entered into a Lease Agreement with M/s Granada Services Pvt. Ltd. to lease 2,00,000 Sq. Ft. industrial property in Noida in favour of Granada Services (P) Ltd. (GSPL). As per the agreement the consideration agreed was such that GSPL/Lessee has to pay to the appellant a sum of Rs. 20,00,00,000/- (Rupees Twenty Crores only) as interest free security deposit at the time of execution of agreement and monthly Rent was fixed as Rs. 5,000/- (Rupees Five Thousand only). The above interest free security deposit was refundable on termination of agreement. The appellant paid .....

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..... to enjoy such property for consideration. According to him, lease is the taxable event in the service of leasing/renting of immovable property, and that it occurs when the transfer of right takes place i.e.; at the time of execution of the agreement that such event which takes place at the time of execution of lease agreement is a one time event. Receiving of rental income every month does not make it a continuous service that in the appellant's case the agreement was executed on 09.11.2005. The taxable event if occurred at the time of execution of the agreement, when renting of immovable property was not taxable service. Further, that the appellants have been discharging the service tax liability on monthly rentals received after the serv .....

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..... to the assessable value. The learned counsel has further relied on the final order of this Tribunal in the case of M/s Vikhroli Corporate Park vs. Commissioner of Service Tax, Mumbai reported at 2016 (12) TMI 484-CESTAT Mumbai. He has further submitted that the said security deposit was refunded on 31.03.2011. 5. Heard the learned AR who has submitted that taking into consideration the huge amount of security deposit received by the appellant to the tune of Rs. 20 crores and fixing a monthly rent of Rs. 5,000/- the clear indication is that the monthly rent was influenced by security deposit. 6. Having considered the submissions from both the sides and on perusal of record and perusal of finding by this Tribunal in the final orders relied .....

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