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2020 (6) TMI 88 - AT - Service TaxRefund of Service tax - appellants have preferred a refund claim stating that the same was in respect of food served on which VAT was paid - HELD THAT:- The Revenue has proceeded on certain surmises and conjectures. The two major surmises were that with the usage of LCD display, etc., it is evident that the banquet halls were let out temporarily for a day and that the charges for the same are inbuilt into the bill raised by the appellant towards the food charges and this inbuilt value needs to be treated as consideration towards the ‘Mandap Keeper’ services provided by the appellant. We are afraid that it is not open to the Revenue to decide the taxability of a new entry merely on the basis of imagination. For any service to be held to be taxable, there should be a service provider, service recipient and consideration for the service. It cannot be imagined that such consideration was inbuilt. It is incumbent upon Revenue to show such consideration in quantifiable terms in order to levy service tax, though on a discounted value. Revenue could not place any proof in the form of a bill, etc., to substantiate the allegation that the banquet halls were rented out for a consideration - the department’s stand is not substantiated so far as the reduction of refund is concerned on merits. Appeal allowed - decided in favor of appellant.
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