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2019 (4) TMI 243 - AT - Service TaxMandap Keeper service - demand of service tax - Held that:- The appellants are not taxable as a Mandap Keeper in respect of corporate booking of rooms where conference hall is provided as a complimentary. However, wherever the appellants have only let out the said banquet/ conference halls for use and charge for the same, appropriate Service Tax is payable - Demand of Service Tax on Mandap Keeper shall be restricted to the cases where the banquet halls/conference rooms have been allowed to be used per se. Beauty treatment and health & fitness service - Hair cutting services - demand of service tax - Held that:- The main dispute between the Department and the appellants is about providing the bifurcation and documentary evidence thereof. We find that wherever the appellants have provided the services of ‘therapeutic massage’, the same shall not be liable for Service Tax and wherever, massage per se is provided Service Tax shall be paid. Similarly, it was contended by the Department that the appellants have not produced any documentary evidence that they were doing only hair cutting/dying during the period 01.08.2002 to 16.06.2005 - Service Tax in respect of ‘Beauty Treatment and Health and Fitness Centre’ shall be re-computed after allowing cum-duty benefit. Club or association Service - Membership fee - demand of service tax - Held that:- It was held in number of cases that in view of the mutuality of interest and looking into the fact that the members of the club are providing services to themselves; no Service Tax is leviable on the same - demand set aside. Dry cleaning services - internet café - demand of service tax - Held that:- The appellants claim that a small portion was for internet services and most of the receipts were for usage of ISD/STD telephone. We find that necessary bifurcation may be submitted to the authorities for computation of applicable duty. Similarly, the appellants may produce proof regarding their claim that they have not provided dry clean service to their customers. Wherever they have provided such services to the customers, the same shall be chargeable to Service Tax. For this reason, we find that the case needs to be remanded back to the original authority for appreciation of evidence given by the appellants and to compute the Service Tax liability - Service Tax in respect of ‘Dry Cleaning’ and ‘Internet Café’ shall be re-computed after allowing cum-duty benefit. Business Auxiliary Service - demand of service tax - It is not the appellant’s case that they are receiving a fixed rent. They are getting a percentage of sales as the remuneration. They have allowed their premises to be utilized for the display and also providing sales personnel and packing materials and are offering facilities for branding of the products in a place outside the shop. This certainly amounts to promotion of business therefore charging of Service Tax under the ‘BAS’ category is tenable - demand upheld. Extended period of limitation - Held that:- Mere submission of Returns regularly is not enough for the Department to know the activities of the appellant. The appellant being well aware of the provisions of Service Tax have not declared relevant details to the Department - extended period is invokable and penalties are imposable - however, during the relevant periods both under Section 76 and Section 78 cannot be imposed. Appeal allowed in part and part matter on remand.
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