TMI Blog2011 (12) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant procures raw materials and make objects necessary for rendering services and uses it for rendering such services - The value of other goods and material, if sold separately would be excluded under exemption Notification No. 12/2003 - directed to deposit Rs.30 lakhs towards duty demand within 12 months from the date of the order – against assessee. - 1764 of 2010 - ST/939/2011 - Dated:- 21-12-2011 - Archana Wadhwa, Mathew John, JJ. For Appellant: Shri R Santhanam, Adv. For Respondent: Shri K K Jaiswal, DR Per: Mathew John: The appellants were registered for paying service tax under the head for "Event Management Services" and were paying such tax. On scrutiny of their records, Revenue noticed that during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... every location. b) Necessary back up power, fuel and other daily necessities for your staff. c) Lights and audio system. d) Caps, T shirts for the promoters. e) Leaflets to be printed in quantity as discussed, with a provision for dealer stamp. f) All necessary permissions at the event locations and also obtaining permits for crossing State borders. g) Car race demo game as per discussion. h) Database generated during each event day will be set to us in a soft copy, in details and also a summary everyday, for the day and also on a cumulative basis. (iii) Advertising the products of Escorts Ltd in Pau Kissan Mela at Ludhiana the work involved responsibilities like: a) 10ft.x8ft. six flex prints. b) 6ft.x4dt. four flex fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice provided in relation to planning, promotion, organising or presentation of any arts, entertainment, business, sports, marriage or any other event and includes any consultation provided in this regard;" 6. He also points out the clarification issued by CBEC vide F. No. B11/1/2002-TRU dated 01-08-2002 and CBEC Circular No. 96/7/2007 dated 23-08-2007 which reads as under: " (i) Nature of services Para 2. As per clause (34), "event management" means any service provided in relation to planning, promotion, organizing or presentation of any arts, entertainment, business, sports or any other event and includes any consultation provided in this regard. Vide clause (90) (zu), taxable service means any service provided to a client, b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ystem, for advertising the event etc. and revenue is generated by renting out the exhibition space and sale of ticket, whether service tax will be leviable on the amount charged by the contractors or on the amount generated by sale of space or tickets etc. It is clarified that service tax is not on the event but on the service provided for managing an event. Therefore in a case where the event is organized/managed by the sponsor himself, no service tax is payable as "event management". However, the contractors who provide service as mandap keeper, videographer, security agency etc. are no doubt liable to pay service tax on their "taxable service". It is clarified that service tax under the category of event management is not leviable on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Management" to the organizers and is liable to pay service tax under "Event Management Service". The two services, namely "Business Exhibition Service" and "Event Management Service", and the two service providers of the respective services are distinct-Reference Code No.041.01/23.8.2007 of Circular No.96/7/2007 dated 23.8.2007." 7. The AR also argues that exemption under Notification 12/2003-ST dated 20-06-2003 will not be available to the appellants because the material used is consumed in providing the service and there is no sale of the material as such. 8. The AR points out that in the case of materials like tea bags, posters/advertisement materials like caps which were supplied by their principals. Without making the stalls con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s necessary for rendering services and uses it for rendering such services. 11. Prima facie we are not in agreement with the argument regarding time bar. This is a case where the appellant organizes his affairs in a way to give the impression that major part of the remuneration is received as re-imbursement. Such arrangements come out of detailed knowledge of legal provisions and a belief that payment of tax can be avoided. This does not happen due to lack of knowledge. So the only issue relevant is that the appellant had disclosed the amounts received as re-imbursements to the department. There is no evidence of such disclosure. So at this stage we prima facie feel that extended period can be invoked in this case. 12. So prima facie we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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