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2019 (3) TMI 184 - AT - Service TaxValuation - maintenance services - inclusion of notional interest on ‘maintenance refundable security deposit’ in assessable value - Department was of the view that interest accrued on such interest free security deposit should be added to value of services and service tax should be paid on such charges - Held that:- The issue of addition of Notional interest on refundable security deposit in the value of service has already been settled by the Tribunal in the case of MURLI RELATORS PRIVATE LIMITED v. COMMISSIONER OF CENTRAL EXCISE, [2014 (9) TMI 461 - CESTAT MUMBAI], where it was held that Notional interest on interest free security deposit cannot be added to the rent agreed upon between the parties for the purpose of levy of service tax on renting of immovable property. The above decision is given in respect of notional interest on security deposit taken for rent but the principle enunciated therein will apply to notional interest on refundable security deposit taken for maintenance service also. There is no justification for inclusion of the notional interest in the consideration for payment of service tax - appeal allowed - decided in favor of appellant.
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