TMI Blog2017 (5) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... p Keeper Service does not arise - Held that: - having discharged luxury tax on the room rent charged to the corporate clients they are not required to pay any service tax - the appellant was correct in contending before the lower authorities that they are not charging any additional amount towards the conference charges for use of conference halls - the view taken in the case of Merwara Estates and Rambagh Palace Hotels Pvt Ltd [2013 (12) TMI 556 - CESTAT NEW DELHI] clearly apply in this case wherein the Tribunal took a view that functions and activity of giving hotel rooms while organising functions in hotels is entirely different from Mandap Keeper Service - appellant need not be taxed under Mandap Keeper Service for the entire amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eparately for the conference room and hence they are not covered under Mandap Keeper Service as they charge only room rent; the question of rendering Mandap Keeper Service does not arise. The adjudicating authority after following due process of law, did not agree with the contentions raised and confirmed the demands with interest and imposed penalties. The first appellate authority also concurred with the views of the adjudicating authority. Against such an order-in-appeal dated 30/11/2005 the appellant preferred an appeal before the Tribunal in appeal ST/129 130/2006 which were disposed off by common order No.A/730-731/2014/CSTB/CI dated 02/05/2014 rejecting the appeals. Against the said order of the Tribunal an appeal was preferred bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4, wherein the appellant presented before the adjudicating authority all the details and after scrutinizing the said details the adjudicating authority has come to a conclusion that approximately 20% of the total income from room rent can be attributed towards conference hall and service tax can be levied on such amount after granting eligible abatement on the said amount calculated @ 20% of the total income. In order to settle the issue the appellant accepted the said order and Revenue has also accepted the same, as Revenue has not filed any appeal against the said adjudication order. It is his submission that appellant, despite contesting the issue, in order to settle the issue once and for all, started paying amount of service tax liabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Central Excise, Jaipur 2013 (31) STR 480 (Tri.Del.). He would also submit that in the absence of any machinery to ascertain the value of the taxable service in composite sale price, Revenue is not justified to artificially or arbitrarily attribute any part of the consideration towards taxable service is the law settled by Hon ble High Court of Delhi in the case of Suresh Kumar Bansal v. Union of India - 2016 (43) STR 3 (Del.) 4. Learned Authorised Representative reiterates the findings of the first appellate authority and submits that they themselves have discharged service tax liability under Mandap Keeper Service after getting themselves registered. If that be so, the valuation adopted by them is erroneous and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the invoices are specifically in the name of corporate clients and the invoices indicate only the amounts charged by them for the rooms. The details of the rooms and check-in and check-outs done by the officials of their corporate clients are clearly indicating that the appellants are only charging room rent to their corporate clients. There is nothing in the said invoices to indicate that appellant had charged any amount towards utilisation of conference halls and gymnasiums, etc. There is no bifurcation indicated in the invoices to come to a conclusion that appellant had in fact charged an amount for the use of the conference halls. 7. On this factual matrix we find that the appellant was correct in contending before the lower a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oms to the customers, who might organise function in the hotel is an activity entirely different from the mandap keeper activity. The definition of Mandap Keeper nowhere covers the temporary occupation of hotel rooms or the purpose of boarding, temporary residence. It is not disputed that no function is held in the hotel room which is used for the purpose of staying in the same. As such, we are of the view that the order of the lower authorities holding inclusion of the hotel rooms rent into the value of Mandap Keeper Service is not sustainable. The same is accordingly set aside and the appeal is allowed with consequential relief to the appellant. 8. In view of the foregoing we hold that both the lower authorities were in error in comi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
