9911796707
TMI Blog2025 (3) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant has not collected the service tax from the licensees - after having found against the Department on the ground on which the show cause notice was issued, the Ld. Commissioner should not have confirmed the demand on any other ground. Accordingly, the demand confirmed in the impugned is not sustainable abd the same is liable to be set aside on this ground alone. Valuation of service tax - inclusion of amounts reimbursed by the licensees for electricity, telephone, and maintenance charges in the assessable value - HELD THAT:- The payments received by them are the reimbursements and they were not expenditure or cost incurred by them in the course of providing renting of immovable property service. The amounts reimbursed by the licenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entities to use portions of its said premises under leave and licence agreements. In terms of the said agreements, the licencees concerned were required to pay the monthly licence fee to the appellant for the use and enjoyment of the specified area in the property concerned. In addition to the licence fee, the licencees were to pay for the electricity consumed as well as charges on account of maintenance. 2.1. Electricity at ITC Centre, Kolkata was provided by CESC Ltd. which raised a single bill on the appellant for the entire premises. Such bill was paid by the appellant at the first instance. The amount charged by CESC Ltd. for electricity consumed by the licencees was ascertained on pro rata basis with reference to the area occupied by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - from the licencees but had not deposited the same with the Government exchequer. After due process, the said notice was adjudicated and the demand of service tax made in the notice was confirmed along with interest and penalty. Aggrieved against the confirmation of the demands, the appellant has filed this appeal. 3. The appellant submits that the show cause notice was issued on the allegation that service tax of Rs.95,06,861 was recovered from the licencees but not deposited to Government exchequer. However, in the impugned order, the Ld. Commissioner found that no service tax was recovered by the appellant from the licencees in respect of the cost of electricity, telephone and maintenance. In view of the said finding, the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntenance charges are not includable in the assessable value. Thus, they prayed for setting aside the demands of service tax along with interest and penalty confirmed in the impugned order. 4. The Ld. A.R. reiterated the findings in the impugned order. 5. Heard both sides and perused the appeal documents. 6. We find that the SCN was issued to the appellant demanding service tax on the allegation that the appellant has "recovered service tax from the clients but not deposited the same to Govt. exchequer". However, we find at para 8.2(b) of the impugned order that the Ld. Commissioner has given the finding that the appellant has not collected the service tax from the licensees. For the sake of ready reference the said finding of the Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the payments received by them are the reimbursements and they were not expenditure or cost incurred by them in the course of providing renting of immovable property service. The amounts reimbursed by the licencees for electricity, telephone and maintenance were not 'consideration' for any service provided by the appellant in the course of providing renting of immovable property service . Further, we observe that the appellant got the reimbursements of the actual cost without any mark up. Thus, we observe that they acted as 'pure agents' for collecting the charges and paying it to the concerned agencies. Thus, we hold that the reimbursements received by the appellant on account of electricity, telephone and maintenance charg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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