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2021 (5) TMI 836 - AT - Service TaxRefund of excess service tax paid - Demand of differential rate of tax on Preferred Location Service - CENVAT Credit - input services - Renting of Immovable Property Service - HELD THAT:- The issue of Preferential Location Charges and natural bundling thereof with main service under Section 65(3) of the Finance Act, 1994 has been decided in the case of M/S SJP INFRACON LIMITED VERSUS THE COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX, NOIDA [2018 (12) TMI 253 - CESTAT ALLAHABAD] where it was held that In the present case construction of residential complex service is the service which gives essential character to the package of the service and, therefore, the charges are essentially required to be bundled with the single service namely construction of residential complex service - thus, the Preferential Location Charges were correctly subjected to Service Tax at same rate as that of Construction of Residential Complex Service by the Appellant and the differential demand of Service Tax alongwith interest and penalty therefore must be quashed and set aside. The Appellant also becomes entitled to consequential relief in form of refund as claimed for by them on this count, in terms of Section 11B of the Central Excise Act, 1944. Renting of immovable property service - HELD THAT:- The SCN itself suggests that the demand is raised since the service availed is essentially a business entity and the property is to be used for accommodation of Directors/Senior Management personnel. This in itself is not sufficient to hold that the nature of service was that of Renting of immovable property for commercial use. The Appellant has adduced evidence in form of Electricity bills and Certificate from Co-Op Housing Society, which shows that only one Director was permanently residing at the leased accommodation premises and the property had not commercial use. There is no dispute as such that the leased premises was used only as residential dwelling of the Director - the demand on this count also must be quashed and set aside. Appeal allowed - decided in favor of appellant.
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