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2014 (12) TMI 544 - AT - Service TaxMandap Keeper Services - Auditorium rented out for conducting drama performance and other cultural entertainments - Assessee contends that such activity cannot come under purview of Mandap Keeper Service - Whether they are liable to service tax under the category of “Mandap Keeper Services” during the period from 1998-99 to 2004-05 - Held that:- Tribunal in the case of Secretary, Town Hall Committee [2007 (6) TMI 504 - CESTAT BANGALORE] has held that cultural functions are also social functions and renting out the hall for cultural functions would attract Service Tax liability. The said decision of the Tribunal was also upheld by the Hon’ble High Court of Karnataka reported in [2011 (4) TMI 191 - KARNATAKA HIGH COURT]. This Tribunal also followed the ratio of the said decision in the case of Manager, Ravindra Kalakshetra (2007 (10) TMI 208 - CESTAT, BANGALORE) and also in the case of Surat Municipal Corporation v. Commissioner of Central Excise, Surat reported in [2006 (2) TMI 45 - CESTAT, NEW DELHI]. Thus, we are of the considered view that the activity undertaken by the appellant in the present case would get squarely covered under the category of “Mandap Keeper Services” and the appellants are liable to pay Service Tax on the said activity accordingly. In the case of Statutory/Government bodies, there can be no mala fide intention to evade payment of Service Tax and it can be considered only as an omission on the part of the appellants and, therefore, there is no need to impose any penalty and invoke any extended period of time - demand of Service Tax can be upheld only for the normal period of limitation and not for the extended period. The adjudicating authority is directed to re-compute the duty demand for the normal period of limitation and intimate the same to the appellants for payment. The appellant would also be liable to pay interest on the recomputed demand in terms of Section 75 of the Finance Act, 1994. - there cannot be any mala fide intention on the part of the appellant being a Government body and, therefore, we set aside the penalties imposed on the appellants under Section 80 of the Finance Act, 1994 - Decided partly in favour of assessee.
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