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2024 (3) TMI 68 - CESTAT NEW DELHILevy of service tax - notional interest on the security deposit collected by the appellant at the time of renting out the property and fixing the monthly rent - HELD THAT:- The issue is no longer res-integra and has been decided in favour of the assessee by the this Tribunal in Murali Realtors Private Ltd vs Commissioner of Central Excise, Pune [2014 (9) TMI 461 - CESTAT MUMBAI] which was followed in M/s Singhal Premises, Pvt Ltd Vs Commissioner, Central Excise, Jaipur [2023 (10) TMI 1166 - CESTAT NEW DELHI], where the Bench held that service tax could not have been levied on the notional interest calculated by the department on the interest fee security deposit collected by the appellant from tenants. In the present case, the appellant had not disputed their liability to pay service tax on the rental amount of the property as they are paying service tax on the same and therefore the dispute is limited regarding the liability to pay service tax on the notional interest earned by them on the amount of security deposits received from the service recipients - no service tax can be levied on the appellant in respect of the notional interest earned on the security deposits. Since the main issue decided in favour of the appellant, it is not necessary to go into the other grounds of challenge raised in the appeal. The impugned orders are set aside - appeal allowed.
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