TMI Blog2017 (11) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... The expenditure under Section 67 providing for adjustments made form any deposit to be considered as part of assessable value was given in a different context. In respect of schemes such as Own Your Telephone (OYT wing) a part of charges for telephone service was recovered by debiting of security deposit - In the facts of the present case, the retention of the portion of deposit towards capital ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er gave some extra deposit for providing telephone connection on an urgent basis. After providing such connection, when the connection was discontinued prematurely they were retaining part of the amount. Revenue was of the view that such amount retained forms part of the value of the services and based on such reasoning Revenue issued a demand for service tax short paid during the period April, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stification. 5. Contesting the above, ld. DR submits that this expenditure is for providing services only and the fact that they have billed for Tatkal Scheme to customers at the rate applicable to other customers cannot alter the situation. He submits that the service tax is required to be paid on the gross value from the service recipient. He also argued that during the relevant period, the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service tax can be charged only on the consideration received by the service provider towards providing the telephone services under Section 65(105)(b) of the Finance Act, 1994. To decide about the service tax liability on the portion of the deposit retained by the appellant, we need to understand whether such amount retained was towards consideration for providing telephone services. The claim o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Your Telephone (OYT wing) a part of charges for telephone service was recovered by debiting of security deposit. In the facts of the present case, the retention of the portion of deposit towards capital expenditure incurred and not for provision of telephone service. In this view of the matter, we find that the demand for service tax raised cannot be upheld. 7. In view of the above discussions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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