9911796707
TMI Blog2023 (9) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant was engaged in providing construction services for a project viz. "Metro Zone" at Anna Nagar, Chennai. Later, the appellant did not provide the services and also had to return the advance received along with compensations. 1.2 The Department was of the view that the appellant was liable to pay Service Tax on the advance received; further, that the appellant had engaged various services for residential construction to be handed over to an assessee Shri G.N. Pandian, for which also Service Tax was not paid by the appellant. For the period from August 2009 to June 2010, there was belated payment of Service Tax for which the appellant had to pay interest. Again, the appellant had collected electricity charges, water / CMWSSB cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssifiable under 'Works Contract Service' or 'Commercial Construction Service' and whether service tax is payable on the advance amount of Rs.85 crores received from M/s. Himadri Enterprises Private Limited towards construction of 2,50,00,000 sq. feet of commercial construction or otherwise. (ii) Whether the service tax is payable on the 1,10,000 sq. feet of constructed area of residential construction to be handed over by the assessee to Shri G.N. Pandian? (iii) Whether interest is payable on the belated payment of service tax for the period from August 2009 to June 2010? (iv) Whether electricity charges, water / CMWSSB charges and infrastructure charges realised by the assessee are includable in the gross value and service tax is pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Ld. Counsel for the appellant, is with regard to the demand of interest on the advance returned by the appellant in respect of "Metro Zone" Project. Paragraph 14.1 of the impugned order was referred to by the Ld. Counsel to submit that the appellant had received an amount of Rs.85 crores as advance for the aforesaid project; since the project failed, the advance was returned to the client and no services were provided and that the adjudicating authority has dropped the demand of Service Tax raised in the Show Cause Notice in respect of such advance amount of Rs.85 crores received by the appellant but, interest on such demand proposed in the Show Cause Notice has been confirmed. 4.5.2 It is argued by the Ld. Counsel that when the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the project namely, "Metro Zone" received by the appellant and returned to the client. The discussion made by the adjudicating authority in paragraph 14.1 of the impugned order reads as under: - "14.1 As per Section 67 of the Finance Act, 1994, service tax is chargeable on any taxable service with reference to its value and such value shall be the consideration received and to be received by the provider of the service. Whereas in the present case as already discussed in detail in preceding paragraphs, the assessee has received an advance amount of Rs.85 crores from M/s. Himadri for the services to be provided and as per Section 67 of the Act, the same is taxable. However, it is established that the assessee has ultimately not provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advance amount of Rs.85 crores received by the appellant and returned thereafter. However, the adjudicating authority has proceeded to confirm the demand of interest on such Service Tax. We do not understand how the liability of interest would arise when there is no liability to Service Tax. Hence, the same is required to be set aside, which we hereby do. 8.1 The second issue is with regard to the demand on reimbursable expenses. It is brought out from the discussion at paragraph 17.0 in the impugned order that these are nothing but electricity charges, water charges, sewerage charges and other infrastructure charges; the period is from 2009-10 to 2010-11. The Department is of the view that the appellant has collected higher amount than t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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