TMI Blog2017 (5) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... enance of immovable properties. Regarding the valuation of such taxable service, A portion of the building is still under the control/maintenance of the appellants themselves. We find that while tax liability of the appellant has to be upheld, the method of arriving at the tax value has to be in terms of Rule 3 (b). For applying the provision of Rule 3 (b), the stipulation is that the value shall not be less than the cost of provision of such taxable service. The equal money value has to be arrived at based on the documents and supporting evidence to be submitted by the appellant. For applying the provision of Rule 3 (b), the stipulation is that the value shall not be less than the cost of provision of such taxable service. The equal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , apart from the consideration for construction of the residential unit. The said fund is to be transferred to the welfare association of residents, as and when formed, for maintenance and management of the said complex. As the project was on-going and the welfare association was yet to be formed, the appellants undertook the work of maintenance of the whole project premises, which included already sold dwelling units in which some of the residences were occupied. The Revenue entertained a view that the appellants have rendered service of management maintenance and repair of the said dwelling units/ complex and are liable to pay service tax. As there is no direct consideration received from the occupants of the flats, the Revenue invoked th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties imposed on them. 4. The ld. A.R. while reiterating the findings of the lower authorities submitted that the appellant did provide service of maintenance to various occupants of the residential complex. There is no direct consideration received for this. However, the occupants of the flats already deposited the corpus-fund towards maintenance of their complex and such fund is very much available with the appellant. The said fund is to be transferred, in future, to the welfare association to be formed after all occupants duly joined to create such association. As the taxable service has been provided and no direct consideration is available as per the accounts, Revenue correctly resorted to the provisions of valuation rules, to arrive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent, maintenance and repair service which specifically talks about management and maintenance of immovable properties. 7. Regarding the valuation of such taxable service, we find that the notional interest adopted by the Revenue will not form a proper basis. Admittedly, there is no evidence regarding accrual of interest to the appellant on the deposit/ corpus fund received from the occupants of the flats. No such finding has been recorded by the lower authorities. The appellant also contested that all the residential units in the complex were not sold or occupied by various owners. A portion of the building is still under the control / maintenance of the appellants themselves. We find that while tax liability of the appellant has to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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