9911796707
TMI Blog2018 (4) TMI 1499X X X X Extracts X X X X X X X X Extracts X X X X ..... the Service Tax liability on the amount received by them for Repair and Maintenance expenses undertaken by the lessee, as also Service Tax liability arise under the category of 'Renting of immovable property' for an amount received as lease rent. 4. Relevant facts that arise for consideration, after filtering out the unnecessary details, are that the appellant M/S Sangli District Central Co-op Bank Ltd. (SDCC in short) took over the business of sugar factory in the name of Yashwant SSK Ltd. (YSSK in short) for non-payment of loan. SDCC leased out the sugar factory to Rajaram Bapu Patil SSK Ltd. (RBPSSK in short) on consideration of amount as lease rent. As per the scheme of arrangement, the amount of lease rent paid by RBPSSK was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is his submission that said ratio may be followed and appeal may be allowed and also the submission that the penalty imposed be set aside. 5. Learned AR reiterates the findings of the lower authorities and submits that the Service Tax liability on Renting of immovable property was discharged by the appellant only after investigation has been taken up. 6.On careful consideration of the submissions made by both sides, we find that the issue that falls for consideration is whether the value of repair and maintenance, which was incurred by RBPSSK, on the sugar factory needs to be included on the value, as received for renting of immovable proper or otherwise; and whether consequential interest and penalties on demand on such value needs to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lessor (appellant). Therefore, the said expenditure cannot be considered as extra consideration towards the lease rent. Lease rent is the only amount which is received by the appellant on account of lease of the premises to the lessee. Therefore, the demand on expenditure towards repair and maintenance is not sustainable. Accordingly, we set aside the demand related thereto." 8. As regards the interest and penalty, we find that as the issue was recovery of the loan debited by the principal debtor YSSK and in order to salvage the loan, the appellant have leased out the factory to various manufacturers that could be an interpretation regarding Service Tax liability under the category of renting of immovable property service, however, we hol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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