TaxTMI 
TaxTMI 
2020 (2) TMI 349
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....ef facts of matter are that the appellant is operating parking areas in five Malls by way of providing parking to the patrons/visitors of shopping malls and collecting parking fees for which they have appointed an outside agency (herein after referred to as the Third Party Agency) for managing the parking area who is collecting "Parking Fees" on behalf of the appellants and remitting the proceeds to the appellant. The third-party agency raises the invoice for operating cost and its management fee and charges Service tax on these amounts and pays the remainder amount of gross collection on monthly basis after deducting its direct operating cost and management fee. The entire revenue generated by way of selling parking tickets belongs to the appellant. Parking income is recorded as revenue by the appellant in its books of accounts. The appellants claims that the income earned from parking fees belongs to appellants entirely and nothing is remitted to the mall owners from the collections made or otherwise. It is the claim of the appellant that it has no written contract with the Mall owners and is not paying any amount by way of rent or space allocation or by whatever name it may be c....
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....ed to Mall owners and no consideration is paid or received from the mall owners; the income earned from parking fees belongs to assessee entirely and nothing is remitted to the mall owners from the collections made or otherwise; there is no privity of contract between the person who is paying the parking charges and the Mall owners; there should be a direct link between provision of services and consideration received; consideration of Service may be provided by the third party who is interested in the service to be provided to the participant i.e. consideration should either flow from beneficiary or from a third person on behalf of the beneficiary; they were conducting own business as they are operating the parking area by employing own resources and labour and they are bearing all the related expenses on their own account and booking the same as business expenses; they are not managing the parking facilities for the mall owners but rendering parking services to the visitors or customers of the mall. The "Management, Maintenance or Repair Services" has been rendered to self by the appellant in order to run the business of parking. The learned Counsel for the appellant further argu....
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....he parking on its own, account instead of bearing the cost and expenses of the managing the parking space themselves. They claimed that renting of immovable property service more appropriately classify the transaction but as no consideration is charged under this category, they cannot be made liable for service tax. 4. The learned Departmental Representative, however, vehemently argued supporting the Order-in-Original and maintained that the services of the appellant was duly covered under the category of 'management, maintenance or repairs' and attracted levy of service tax in terms of the provisions of Section 65(105)(zzg) of the Finance Act, 1994. He has supported the impugned order and has submitted that it was highly improbable that there was no agreement between the appellant and the mall owners as no mall owner would allow unhindered activities at the will of the lessee/occupants of the premises without any preconditions and without any financial consideration. He further supported the finding that the appellant is engaged in providing the service of 'management, maintenance or repairs' of malls and in consideration thereof the appellant was given right of space, including ....
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....the relevant provisions of Section 67 of the Finance Act, 1994 regarding valuation of the taxable service. It is as follow : SECTION 67. Valuation of taxable services for charging service tax. - (1) Subject to the provisions of this Chapter, where service tax is chargeable on any taxable service with reference to its value, then such value shall, - (i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him; (ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money as, with the addition of service tax charged, is equivalent to the consideration; (iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner. (2) Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged. ....