No Service Tax on Book Reversal Entries, Security and Electricity Deposits u/s Section 67 of Finance Act: CESTAT [Read Order]

CESTAT Chennai set aside a service-tax demand of ₹8.83 lakh on book-reversal entries related to refundable electricity and security deposits. The Tribunal held that such deposits are not consideration for “renting of immovable property” and thus not taxable under Section 67 of the Finance Act. It emphasised the need to distinguish refundable deposits from revenue receipts and found no element of service provision or taxable consideration. Relying on earlier judicial precedents and noting absence of suppression, it also rejected invocation of the extended limitation period. The decision reaffirms that accounting reversals or refundable deposits cannot be treated as taxable value without substantiated proof.