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2014 (12) TMI 413 - SC - Service TaxRecovery of cost of bank guarantee furnished by the Respondent No.5 - High Court in [2014 (8) TMI 102 - DELHI HIGH COURT] held that the transaction between the appellant and Respondent No.5 regarding letting out of immovable property would not fall within the taxable service of “airport services” under clause (zzz) of Section 65(105) prior to 01.07.2010 - Held that:- As regards the liability to pay the costs for obtaining the bank guarantee furnished by Respondent No.5 it observed that the appellant was fully aware and had consented to the arrangements as recorded in the award dated 30.03.2011 and as such it was not open for the appellant to seek that Respondent No.5 deposit the entire amount of service tax as the same was contrary to the consent award dated 30.03.2011. It was further observed that despite having such Consent Award in its favour, the appellant insisted on Respondent No.5 securing it by a bank guarantee and as such it is the appellant who must bear the cost for the bank guarantee furnished by Respondent No.5. The High Court thus directed the appellant to pay to Respondent No.5 a sum of ₹ 1.06 crores, being the cost of bank guarantee. Supreme Court affirm the view taken by the High Court. The interest of the appellant was well secured by the Award dated 30.03.2011 which was a Consent Award. Respondent No.5 had an interim order in its favour passed by the High Court and it was only because of the insistence on part of appellant that Respondent No.5 was directed to furnish the bank guarantee. It is, therefore, but logical and consequential that the appellant must bear the costs for securing such bank guarantee. - Decided against appellant.
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