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2024 (3) TMI 639 - AT - Service TaxLevy of Service Tax - Business Support Service - amount collected by the appellant on account of electricity and water charges from the tenants being initially paid by them to the Technopark - time limitation - HELD THAT:- The charges on account of electricity, water etc. is required to be paid by the tenants / lessee in addition to the lease rent to designated agencies / Technopark. Therefore, the Revenue’s allegation that they have provided Business Support Service to the lessee / tenants, in our view, cannot be sustained. The issue of eligibility to service tax of these reimbursable expenses viz. water charges and electricity charges is no more res integra and covered by the judgment of this Tribunal in the case of M/S ICC REALITY (INDIA) PVT LTD & OTHERS VERSUS COMMISSIONER OF CENTRAL EXCISE [2013 (12) TMI 854 - CESTAT MUMBAI] and Kiran Gems Pvt. Ltd. Vs. CCE&ST, Surat [2018 (11) TMI 1388 - CESTAT AHMEDABAD], where it was held that the said facility charges are not leviable to service tax. Extended period of Limitation - HELD THAT:- It is found that the appellant was paying service tax under the category of Renting of Immovable Property Service’ and were filing ST-3 Returns periodically with the Department. Hence, suppression of facts, willful misstatement with intent to evade tax etc. cannot be fastened upon the appellant alleging non-payment of service tax. Accordingly, invocation of extended period in confirming the demand on the facility charges, when the same is reflected in the Lease Deed is not sustainable. Following the aforesaid settled principles on the subject, the electricity and water charges collected by the appellant from the tenants cannot be leviable to service tax under ‘Business Support Service’. Consequently, the impugned order is set aside - appeal allowed.
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