TMI Blog2018 (8) TMI 622X X X X Extracts X X X X X X X X Extracts X X X X ..... ity deposit. Such refundable amount cannot form consideration as defined under Section 67. The demand of Service Tax on the amount of annual rent of ₹ 84,000/-, as defined in the agreement is confirmed - Appellant shall also be liable to pay interest on the delayed deposit - penalty is set aside. Appeal allowed in part. - Service Tax Appeal No. 52673/2015 - ST/A/52663/2018-CU[DB] - Da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his agreement provided that the rent shall be ₹ 7000/- per month (Rs.84,000/- per annum) with interest free security of ₹ 5,00,000/- lying deposited with the landlord/Appellant. The agreement further stipulates that, if the tenant deposits an additional amount of ₹ 5,00,000/- (i.e. a total of ₹ 10,00,000/-) with the landlord as interest-free security deposit, then no rent s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through the rent agreement and pointed out that the agreement has provided the amount of rent with an option to the tenant to make the lump sum security deposit in lieu of monthly rent. Thus, the agreement is in no way vague and the impugned order is erroneous demanding Service Tax on the amount of refundable security deposit. The learned counsel further states that they do not dispute the liabil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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