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2018 (11) TMI 1388 - AT - Service TaxValuation - renting of immovable property service - inclusion of reimbursement charges of ₹ 6,44,88,765/- from their client (tenants) towards electricity charges in addition to the rent amount in assessable value - Held that:- As against renting of immovable property the only rent collected by the appellant from their tenants is the consideration towards the rent. The electricity is consumed by the service recipient, therefore, they are liable to pay the same actual unless the same is included in the rent - In the facts of the present case, the electricity expenses is supposed to be borne by the tenants (service recipient), therefore, merely facilitating the payment of electricity charges by the appellant and subsequently taking the reimbursement of the same will not form part and parcel of gross value of service of renting of immovable property. The electricity charges reimbursed to the service provider by the service recipient not includible in gross value of renting of immovable property service. The decision in the case of M/S ICC REALITY (INDIA) PVT LTD & OTHERS VERSUS COMMISSIONER OF CENTRAL EXCISE [2013 (12) TMI 854 - CESTAT MUMBAI] relied upon where it was held that Electricity charges collected from the tenants cannot be formed part of the assessable value for the purpose of service tax as provider of renting of immovable properties. Appeal allowed - decided in favor of appellant.
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