TMI Blog2014 (1) TMI 667X X X X Extracts X X X X X X X X Extracts X X X X ..... 9/2004. By sharing common facilities, the appellant does not promote or market the services of the group companies nor the services rendered can be considered under the category of services incidental or ancillary to the marketing services. In any case, the appellant has been discharging service tax on the said activity under Business Support Services effective from 01/04/2006 and the department has been accepting such payment. Appellant is collecting security/maintenance deposits from the flat owners. Till such time, the flats are actually handed over to the flat owner, the appellant is liable to discharge statutory obligations such as property tax, water charges, electricity charges, etc. under the Maharashtra Ownership of Flats (Regul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The appellant, M/s. Raheja Universal Pvt. Ltd., shared common expenditure such as, staff expenses, space used, computer software and maintenance charges, electricity charges, repairs and maintenance expenses, printing and stationery and vehicle expenses with their group companies during the period 2003-04 to 2005-06. On the said expenses, which was recovered from their group companies, the department was of the view that service tax is payable under the category of Business Auxiliary Service. The service tax demand in this regard amounted to Rs. 45,04,294/-. The appellant is also engaged in construction of residential flats on which they discharged service tax liability. However, they collected maintenance charges/deposits from the flat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e' and the department has accepted the same. The amounts were collected from their group companies towards share of their common expenses incurred such as staff expenses, space used, software maintenance charges, electricity charges, repairs and maintenance expenses, printing and stationary and vehicle expenses. The appellant has not rendered any service for the marketing or promotion of the service rendered by the group companies nor the activity come under the category of transaction processing as held by the adjudicating authority and, therefore, question of payment of service tax under Business Auxiliary Service' does not arise at all. 3.1 As regards demand under Management, Maintenance or Repair Service' the deposits have been coll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner (AR) appearing for the Revenue reiterates the findings of the adjudicating authority. 5. We have carefully considered the rival submissions. 5.1 As regards the demand for service tax on commonly shares expenses under the category of Business Auxiliary Service', we find that the transaction does not involve any of the categories mentioned in BAS. The notice demands tax under clause (ii) of the BAS which relates to promotion or marketing of service provided by the client and under clause (vi) which deals with any incidental or ancillary support service such as billing, collection or recovery of cheques, maintenance of accounts and remittance, inventory management, evaluation of prospective customer or vendor, public relation servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ousing cooperative society when the flats were actually given possession and handed over to the flat owners. Thus the appellant was acting as a pure agent and was performing custodial functions. Therefore, the demand of service tax under Management, Maintenance or Repair service' does not appear to be sustainable in law. However, in respect of certain maintenance functions such as security, cleaning, etc. undertaken, the individual service providers have paid the service tax and, therefore, demanding service tax from the appellant on the same activity again does not appear to be sustainable in law. 5.3 As regards the demand under Health and Fitness Club Service', the appellant has already discharged service tax liability. 6. In view o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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