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TMI Blog2024 (6) TMI 850X X X X Extracts X X X X X X X X Extracts X X X X ..... the deposit is retained and should form a part of the rent paid on the locker, which is taxable. The matter is remanded for a decision on this factual issue. The lower authority shall follow the principles of natural justice and afford a reasonable and time bound opportunity to the appellant to place the evidence on record before passing a speaking order - matter remanded back to the Original Authority for verification. Appeal disposed off by way of remand. X X X X Extracts X X X X X X X X Extracts X X X X ..... f telephone connection or pager or FAX or telegraph or telex or lease circuit. Hence, it appeared that locker caution deposit collected by the appellant KVB from their customers were liable for service tax under Banking and other Financial Services under section 65(12) of FA 1994. After issue of show cause notice the original authority following the due process of law, confirmed the demand of service tax on locker caution deposit along with interest and also imposed penalties. Aggrieved by the said order, the appellant approached the Commissioner Appeals, who has rejected the appeal and upheld the Order in Original. The appellant is hence before us. 3. We have heard the learned Counsel Shri S. Ananthan and Ms. R. Lalitha, Chartered Account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posit is not towards any service activity, let alone a taxable activity. The service provided by the bank is by the provision of a locker to a customer who demands it. The customer pays rent for the same along with service tax. The collection of refundable deposit is to cover the charges for breaking open the locker in case of an eventuality and is not towards any service rendered by the bank. For "service" to be provided there must be a "service provider" rendering services to some other person(s), who shall be recipient of such "service". Breaking open a locker in the case of an eventuality cannot be considered to be a service to a customer. Hence no Service Tax is payable on security deposit collected by the Banks from its customers if i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ench of this Tribunal held that Service tax could not have been levied on the notional interest calculated by the department on the interest fees security deposit collected by the Appellant. Similar view was taken by the Tribunal at Mumbai, in the case of Sameer Rajendra Shah Vs Commissioner of Central Excise, Kolhapur [2014 (11) TMI 499 - CESTAT Mumbai] albeit in the case of security deposit paid on renting of immovable property and it was held that, 'On Security Deposit no Service Tax is payable.' 5.2 We find that is a well-accepted norm of judicial discipline that a Bench of co-equal strength must follow the decision of the another Bench of co-equal strength. Hence in this case apart from deciding the issue on merits we also follow the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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