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2020 (3) TMI 753 - AT - Service TaxShort payment of service tax - Event Management Service - service tax on the amounts collected on the equipments / goods used for providing Event Management Services not paid - demand of short paid duty alongwith the interest and penalties - HELD THAT:- Event Management service includes even the consultation provided in this regard. In the present case, the appellant rendered services like organizing events of Rock shows, Corporate shows, Marriages, Promotions etc. They collected charges for conduct of the events and also provided certain equipments / goods required to conduct the event. The appellant entered into separate contract with the customer for providing the goods needed for the event and collected charges in the nature of rent. These charges are nothing but expenses for rendering event management service and should form part of taxable value for paying service. This is because without the use of such equipments / goods the appellants would not be able to conduct the event. The charges collected in the nature of rent from the customer can only be considered as expenses for providing the event management services. Merely because the appellant bifurcated the contract as Event Management Service and for hiring of goods, it cannot be concluded that the charges paid for use of the goods do not fall within Event management Services. It is true that supply of Tangible Goods Services are taxable w.e.f. 16.5.2008. In the present case, the contracts are artificially bifurcated so as to exclude the charges incurred in use of the goods for providing Event Management Services which is not permissible. The demand confirmed along with interest in the impugned order does not require any interference - the penalty is set aside invoking Section 80 of the Act - Appeal allowed in part.
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