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TMI Blog2024 (8) TMI 1102X X X X Extracts X X X X X X X X Extracts X X X X ..... ired to be set aside.' - thus, the demand of service tax confirmed in the impugned order, on this count is not sustainable. Amount against cost of Gas Meter and installation charges - HELD THAT:- The amount is collected as 'security deposit' in terms of Section 14 of the PNGRB Act, 2006. Further, this amount is refundable at the time of surrender of the connection. Hence, no taxable service is rendered and the amount is not liable to Service Tax - the demand of service tax confirmed in the impugned order, on this count is not sustainable. Reconnection charges collected against re-installation - HELD THAT:- Regarding the demand of Rs.1,483/- on the reconnection charges against re-installation, it is observed that the appellant has not contested this demand. Further, in the appellant s own case, this Tribunal vide Final Order [ 2024 (8) TMI 396 - CESTAT KOLKATA ] has held that the appellant is liable to pay Service Tax on re-connection charges - the appellant is liable to pay service tax along with interest on the reconnection charges received by them. However, there is no suppression of fact with intention to evade the payment of tax exist in this case and hence, no pena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arges received from Tea Estate and other consumers, the appellant submits that three (3) months advance collected by them is security deposit to secure payment; such deposit is taken as per clause 12.03 of the Agreement and it carries interest @3% p.a.; such amount is refundable at the time of termination of the contract and adjusted against the outstanding amount, if the contractee failed to pay as per the terms of the contract. The appellant also submits that the issue is already settled by this Tribunal in the appellant's own case videFinal Order Nos. 76345-76346 of 2024 dated 25.06.2024 in Service Tax Appeal No. 75043 of 2014 anr. (CESTAT, Kolkata). 4.2. Regarding the demand of Service Tax of Rs.9,60,289/- against the cost of gas meter and pipeline installation, the appellant submitted that the amount is collected as Security Deposit in terms of Section 14 of the PNGRB Act, 2006; furthermore, such amount is refundable at the time of surrender of the connection and hence, such amount is not consideration for provision of any taxable service and not liable to Service Tax. It is submitted that the issue is already settled by this Bench of the Tribunal in appellant's own ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d time, the COMPANY shall be at liberty to forfeit the Security Deposit of the CONSUMER. In case of CONSUMER fails to clear the regular bills as raised by the COMPANY as per Clause 9.00, 11.00, 11.02, 11.03 and 13.00 and in the specified period the COMPANY reserves the right to realize/adjust the entire dues from the above advance deposited by the CONSUMER with the COMPANY and in that case the CONSUMER will replenish the shortfall in the advance to the COMPANY immediately within 30(thirty) days time. The COMPANY will pay interest @ 3% (Three Percent) per annum for the above deposited amount. 3. As can be noted from the above reproduced clause of the contract, the amount is by way of deposit carrying interest @ 3% and refundable at the time of termination of the contract. It is also noticed that the same is also meant as a cushion and can be adjusted against the outstandings of the contracted party in case of any short payment thereto. In support of their contention, the appellant have also enclosed evidence, by way of records/returns indicating refund of the amount on termination of the contract on account of above. The said amount is duly reflected in the balance sheet and ledger ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount is collected as 'security deposit' in terms of Section 14 of the PNGRB Act, 2006. Further, this amount is refundable at the time of surrender of the connection. Hence, we hold that no taxable service is rendered and the amount is not liable to Service Tax. This view has also been held in the appellant s own case in Final Order dated 25.06.2024 (supra). The relevant part of the said order is reproduced below: - (f) Amt. against cost of Meter and Installation Charges received from Domestic Consumers. 8. An amount of Rs.22,63,502/- has been made out and confirmed by the adjudicating authority. However, we note that the said amount is required to be collected by way of a security deposit in terms of section 14 of the Petroleum and Natural Gas Regulatory Board Act, 2006 (PNGRB Act). Since this amount is required to be collected in terms of a statutory provision and is refundable at the time of surrender of the connection, this amount cannot form part of the taxable value for consideration for provisioning of taxable service and therefore not liable to Service Tax, Service Tax confirmed thereto by the lower authority is set aside. 7.4. By relying on the decision cited above, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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