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TMI Blog2021 (5) TMI 836X X X X Extracts X X X X X X X X Extracts X X X X ..... de. The Appellant also becomes entitled to consequential relief in form of refund as claimed for by them on this count, in terms of Section 11B of the Central Excise Act, 1944. Renting of immovable property service - HELD THAT:- The SCN itself suggests that the demand is raised since the service availed is essentially a business entity and the property is to be used for accommodation of Directors/Senior Management personnel. This in itself is not sufficient to hold that the nature of service was that of Renting of immovable property for commercial use. The Appellant has adduced evidence in form of Electricity bills and Certificate from Co-Op Housing Society, which shows that only one Director was permanently residing at the leased accommodation premises and the property had not commercial use. There is no dispute as such that the leased premises was used only as residential dwelling of the Director - the demand on this count also must be quashed and set aside. Appeal allowed - decided in favor of appellant. - Service Tax Appeal No.10197 of 2017, 10457 of 2017, 10458 of 2017, 10198 of 2017, 10456 of 2017 - A/11893-11897 /2021 - Dated:- 25-5-2021 - MR. RAMESH NAIR, MEMBER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice, in the nature of preferential location charges such as garden view, road side location etc. They had discharged Service Tax at the same rate as applicable to Construction of residential complex Service, whereas the revenue authorities insist on payment of Tax at full rate. Hence, there is a demand for differential tax made against the Appellants. The Appellant, in the course of audit, had paid such tax with interest and have sought refund thereof, on the grounds that no such differential tax was payable, and which refund was also denied by revenue authorities. 2.2 In case of one M/s. Shreno Ltd., they had let out a residential property to M/s. Alembic Pharmaceuticals Ltd. for use by their Directors/Senior Management personnel for accommodation purpose. The revenue authorities raised demand of Service Tax thereon as renting of immovable property service. The Appellant had paid the said amount of tax and interest during the course of CERA audit and which was sought for as refund, which was also denied. 3. Shri. Saurabh Dixit, Learned Counsel appearing for the Appellants submitted that the issue on hand is no more Res Integra. He submitted that it stands decided in the fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing authority. 5. We have carefully considered the submissions made by both the sides and perused records. As regards the first issue, on Preferential Location Charges and natural bundling thereof with main service under Section 65(3) of the Finance Act, 1994, we find that the issue on hand is no more Res Integra, and stands concluded in favour of the Appellant vide the following decisions: a. SJP Infracon Ltd. V/s. CST, Noida 2018(12) TMI 253-CESTAT ALLAHABAD 2. Brief facts of the case are that the appellants were engaged in Construction of Residential Complex and were paying service tax at abated value as abated under Notification No. 26/2012-ST dated 20.06.2012. Appellant were paying service tax on the entire consideration received for construction of residential complex. The consideration also included charges on account of External Development Charges, Club Building Charges, Fire Fighting Charges, Electrification Fitting Charges, Park Facing Preferential Location Charges, Electrical Sub Station Charges and such other charges. It appeared to Revenue that above stated charges are not part of the consideration for construction of residential complex service and, theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the entire package of service then such naturally associated service is treated as bundled service and the said bundled service is to be treated as single service which gives the entire package its essential character. In the present case construction of residential complex service is the service which gives essential character to the package of the service and, therefore, the charges as stated above are essentially required to be bundled with the single service namely construction of residential complex service. We, therefore, do not find any merit in the stand taken by Revenue. b. Logix Infrastructure Ltd. 2018(11) TMI 462-CESTAT ALLAHABAD 3. Heard the learned Chartered Accountant for appellants. He has submitted that provisions of Section 66F of Finance Act, 1994 provide for Bundled Service. He has explained that w.e.f. 01.07.2012 Section 66F was introduced to the statute which has provided that when there are various elements of services then they are to be bundled together and shall be treated as provision of the Single Service which gives such bundle its essential character. He argued that the charges collected by the appellant such as External Development Charges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... units; (ii)A common area; and (iii) Any one or more of facilities or services such as park, lift, parking space .. 7. As seen from the above definition of Residential Complex Service , parking space specifically stands included in Serial No.(iii) of the definition. If that be so, it has to be held that parking space is a part and parcel of the services falling under the category of Residential Complex Services . As regards the contention of the learned advocate that a new category of services were introduced with effect from 01/07/2012 as Preferential Location Services Development of Complexes , which has been defined as under:- Taxable service means any service provided or to be provided to a buyer, by a builder of a residential complex, or a commercial complex, or any other person authorized by such builder, for providing preferential location or development of such complex but does not include services covered under Subclauses (zzg), (zzq), (zzzh) and in relation to parking place. Explanation For the purposes of this subclause, Preferential Location means any location having extra advantage which attracts extra payments over and above the basic sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent is reproduced below: 24. It has been contended on behalf of the respondents that sub-section (3) of Section 66F of the Finance Act would not apply where the single service which gives the bundle of services its essential character is exempt from the levy of service tax. In the opinion of this Court, there is nothing in the language employed in sub-section (3) to Section 66F to read into it a requirement that such service should not be exempt from tax. All that the sub-section provides is that taxability of bundled services shall be determined in the manner provided therein. The term taxability means liability to taxation. Thus the term taxability would take within its sweep not being taxable also inasmuch as liability to taxation would also mean not being liable to any tax. Thus, the liability to tax of a bundled service has to be determined in the manner provided under sub-section (3) of Section 66F of the Finance Act. If the services are naturally bundled in the ordinary course of business, the bundle of services shall be treated as provision of the single service which gives the bundle its essential character and where the services are not naturally bundled in the ordin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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