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2018 (3) TMI 498 - AT - Service TaxMandap keeper service - Appellants are having facilities of Training hall with all equipments and facilities for giving training to Non-governmental Organisations (NGO) as well as to others for conducting programmes - The department after conducting survey felt that their activity of letting out the hall would attract service tax and they were addressed to register with the department for service tax on 17.1.2005. Held that: - As per section 67 (32) of the Finance Act, “convention” means a formal meeting or assembly which is not open to the general public, but does not include a meeting or assembly, the principal purpose of which is to provide any type of amusement, entertainment or recreation - till 1.5.2006 taxable service in respect of convention service was laid down as ‘to a client, by any commercial concern in relation to holding of a convention, in any manner’. With effect from 1.5.2006, the words “commercial concern" was substituted by the words “person" and w.e.f 16.5.2008, the words “to a client” was replaced by the word “to any person”. There is no dispute that appellants are a charitable, non-profit organization and for the period at least upto 1.5.2006, appellant cannot be called a “commercial concern” and hence there cannot be any tax liability till that date in respect of “convention service”. It is also not the allegation that such meetings or assembly were held for the principal purpose to provide any type of amusement, entertainment or recreation. This being the case on record, the activities of the appellant cannot fall within the ambit of Mandap Keeper service. Appeal allowed - decided in favor of appellant.
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