TMI Blog2013 (12) TMI 854X X X X Extracts X X X X X X X X Extracts X X X X ..... ure and the appellants are charging for the same. Electricity is goods chargeable to duty under Central Excise Tariff as well as under the Maharashtra Value Added Tax Act, 2002. Therefore, the supply of electricity to tenant amounts to sale of goods and not supply of service. Further the Notification No.12/03 ST dated 20/6/2003 exempt from service tax, any value of goods supplied by service provider to service recipient. Further we find that the Commissioner of Central Excise Pune.III vide Order-in-Original dated 28.11.2011 relied upon by the appellants dropped the proceedings which were initiated on the same ground in the case of M/s. Panchshil Tech Park Ltd. The Commissioner of Central Excise in the adjudication order held that electri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le service, all such expenditure or costs shall be treated as consideration for the taxable service provided or to be provided and shall be included in the value for the purpose of charging service tax. 3. The adjudicating authority confirmed the demand by adding the amounts which are as reimbursement of electricity charges from the tenants in the assessable value for the purpose of service tax as provider of renting of immovable property. 4. The contention of the appellants is that as per the Lease Agreement, tenants are to pay the actual electricity expenses to the MSEB. In some cases when the tenants default in payment of electricity charges, the appellants will pay from their own pocket and subsequently recover the electricity charg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ived information under the RTI Act that the Revenue has accepted that order. The appellants relied upon the Pune III Commissionerate communication dated 26.09.2012. The appellants are also situated in the same Commissionerate . The appellants also submitted that the electricity being goods, supply of electricity does not amount to service. Under the Central Excise Tariff Act, electricity is covered under Chapter 27 of the Tariff and under the Maharashtra Value Added Tax Act, 2002, electricity is chargeable to Nil rate of tax as per Schedule A 20 to the Act. Hence the charges which are on actual basis recovered from the tenants towards the electricity charges and paid to the Electricity Board or retained by the appellants as the appellants w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount to be deposited to the appellants account in respect of such facility. In view of this, the demands are rightly made. 8. We find that the appellants are engaged in renting of immovable property and paying service tax. Show-cause notices were issued on the ground that the appellants were receiving certain amounts of reimbursement of charges from their clients while renting of immovable properties. Therefore, such charges are to be added to the assessable value for the purpose of service tax as provider of renting of immovable properties. 9. We have gone through the Lease Agreements. As per the terms and conditions of the Lease Agreements, the tenants have to pay electricity charges directly to the MSEB and the appellants are also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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