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2018 (12) TMI 1127 - AT - Service TaxClassification of services - Business Auxiliary services or otherwise - incentive received from M/s. LKP Financial Services - Held that:- “Business Auxiliary Service” does not cover the aforesaid activity of Money Changing Facility, while ‘Banking & Other Financial Services’ specifically covers ‘Money Changing Business’, that too w.e.f 16.05.2008, Nomenclating the very same under ‘Business Auxiliary Service’ for the purpose of charging service tax is therefore not proper and legal - the demand on account of foreign exchange of incentives from M/s. LKP Financial Services is liable to be set aside irrespective the commission received by appellant from M/s LKP for providing premises to render banking & financial services is taxable provided it had been so demanded - demand set aside. Demand of service tax - Mandap keeper services - non-payment of service tax on the invoices where the tea/ snacks/ breakfast was served - Held that:- In the present case, the appellant hotel being registered as the Mandap keeper is providing the catering service. The invoices so raised by him show that the same were inclusive of charges of catering services. It is clear from the language of the notification that the nature of menu is not the criteria for availing the exemption but the menu served has to be substantial and satisfying - demand set aside. Taxability - convention services - Held that:- While holding senior management meet, dealer meet, customer meet, medical conference etc the appellants were providing the services and that of convention services and not the Mandap keeper services. The fact that those meetings continued till late hours and liquor in addition was served there does not alter the fact that these still were the meetings for the specific group of people for the professional/ official objective and were not open to general public - The findings of the Commissioner are therefore opine incorrect to this effect - However, since the liability while treating them as Mandap keeper service had admittedly been already, discharged, the differential, if any, shall only be payable under this head order accordingly is set aside to this extent. Taxability - 10% services charge/tips in the bills - Held that:- Section (65)67 defines Mandap keeper as a person who allows temporary occupation of a Mandap for a consideration for organizing any official, social or business function. For such services all such charges as are related to the use of a Mandap by a Mandap keeper are to be included towards gross amount and are chargeable to service tax as per the above said provisions - The appellant is admittedly providing the Mandap keeper services. Since 10 % of the service charge/ tip is also one of the charges of services included essentially towards providing the Mandap Keeper Service the same has to be included in the gross amount - demand upheld. Taxability - services received from outside India - Held that:- Undisputedly, for the period 2003-04 and 2006-07, the amounts were remitted on account of services received on account of overseas travel agents (commission), advertisement sales paid to foreign parties including fees paid to international travel agent group for which participation of hotel is mandatory for securing business, payments made for participation in Frequent Flyer Programmes made outside India, Membership outside India i.e. all the services provided and consumed outside India. These servies came into tax net only w.e.f. 18.04.2006 - demand on this count has correctly been dropped by the Ld. Commissioner but only for the period prior 18.04.2006. Time limit of issuing SCN - Held that:- It is apparent from record that the appellant had not paid the, whatever tax, by the prescribed date. They had not disclosed the amount paid towards these services till the date the audit was conducted. There is no communication on record seeking clarification on account of pleaded bonafide confession - the department was entitled to invoke the extended period of limitation. Appeal allowed in part.
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