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2014 (7) TMI 160 - AT - Service TaxClassification - Convention center service or Mandap Keeper Service - appellant rented out a Conference Hall (Banquet Hall) for meetings/conferences/assembly - Held that:- Prima facie, for falling under ambit of ‘convention’ and for classification as a provider of convention service it is not a legislated ingredient that the service (provided by one person to another in relation to holding of a convention not open to the general meeting/assembly public) should be provided only in /upon immovable property including any furniture , fixtures, light fittings and floor coverings therein let out for a consideration for organizing any official, social or business function. Board Circular dated 9.7.2001 clarified that the intention is not to charge service tax twice on the same service; if a service provider is already registered as a mandap keeper and is paying service tax, he is not liable to pay service tax again under the category of convention service. This Circular identifies a subtle distinction between official, social or business function which fall within the scope of mandap keeper and a formal meeting which fall within the scope of convention service. We have not fully comprehended the ‘subtle’ distinction clarified by the Board qua this Circular. Be that as it may. Extended period of limitation - Held that:- Where a person (service provider) is registered as a mandap keeper, the demand of service tax under convention service, particularly by invoking the extended period of limitation is not justified and that having regard to the ambiguity between the scope of the two taxable services, it would be illegitimate to allege suppression of facts or an intention to evade taxes - neither the show cause notice, the primary authority nor the Appellate order had alleged or concluded that renting the appellant’s Banquet Hall to pharmaceutical, insurance and other companies was for holding formal meetings or assembly which is not open to the general public, the specific ingredients for a transaction to fall within the ambit of ‘convention’, defined in Section 65 (32) of the Act - Decided in favour of assessee.
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