- CESTAT sets aside demand under Management, Maintenance or Repair Service of building, on amount collected by builder from flat owners as reimbursement of payment made to various service providers
- Notes assesssee’s contention that, assessee neither provided service nor retained maintenance amount, hence, there arises no service tax liability, absent any service element involved; Observes that, collection of such maintenance charges is under statutory provision of Maharashtra Ownership Flat (Regulations of the promotion of construction, sell management and transfer) Act, 1963 (MOFA), which mandates a builder to maintain building before handing over same to society, for which builder seeks such reimbursement; Relies upon ruling in Kumar Beheray Rathi
- Further, sets aside penalty u/s 78 in respect of liability confirmed under Transport of Goods by Road Agency (GTA) service, stating that, assessee after knowing about non- payment of service tax, promptly paid same along with interest before issuance of show cause notice, hence, there exists a reasonable cause to waive penalty : Mumbai CESTAT