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2019 (1) TMI 183 - AT - Service TaxClassification of service - convention service or Hotel and Fitness Services - Further, the Revenue entertained a view that the appellants are engaged in providing the services under the category of ‘Convention Services’ and are evading the payment of service tax - Held that:- The appellant is running an international golf resort and star hotel with various facilities and these rooms are let-out to employees of corporates who pay room tariff and use facilities for outing and formal meetings. These corporates are also allowed to use the mandap and conference facilities free of charges on complementary in order to attract customers as was stated by the General Manager Shri Mathew during the course of investigation - further, it is found that appellants have produced the bills which have been issued to various customers during the impugned period and we find that appellants have not charged any tariff for conference halls and they have only charged for renting of the rooms. Further, we find that the hotels are totally kept out of renting of immovable property service by Section 65(105)(zzzzw) vide Explanation 1(d) which excluded building used for the purpose of accommodation including hotels/hostels, etc. The Hon’ble High Court of Delhi and Kerala in various decisions have held that levy was covered by Entry 62 of List II of VII Schedule of the Statute relating to luxury tax which the appellants are paying in the present case - Revenue has not been able to bring on record any evidence to show that the appellants are charging service tax on convention service. The impugned order is not sustainable in law - appeal allowed - decided in favor of appellant.
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