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The Dukes Retreat Ltd. Versus CCE Pune-I

2017 (9) TMI 1380 - CESTAT MUMBAI

Classification of services - mandap keeper services - the revenue sought to levy service tax on the entire value i.e. including the value of room charges - whether the appellant is liable to pay service tax under the category of Mandap Keeper Service for the room rent received from hotel guest? - Held that: - the issue is decided in the appellant's own case Dukes Retreat Ltd. Versus Commissioner of Central Excise, Pune-I [2017 (5) TMI 465 - CESTAT MUMBAI], where the bench has categorically given .....

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annot be sustained on limitation also. - Appeal allowed - decided in favor of appellant. - ST/87008/13 - A/89287/17/STB - Dated:- 28-8-2017 - Shri Ramesh Nair, Member (Judicial) And Shri Raju, Member (Technical) Shri Prasad Paranjape, Advocate for the appellant Shri M.K. Sarangi, ADC (AR) for the respondent ORDER Per : Ramesh Nair The issue involved is whether the appellant is liable to pay service tax under the category of Mandap Keeper Service for the room rent received from hotel guest. 2 .....

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on 65 (105)(zzzzw) of the Finance Act, 1994. C. It is settled position in law that when a specific new service is introduced without carving out any scope from the existing service category, such service can be liable to be service tax only prospectively i.e. from the date of introduction of such new service in the statute book. On this proposition, the Appellant refers to and relies upon the judgement of the Hon ble Bombay High Court in the case of Indian National Ship Owners Association - 2009 .....

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when it provides Mandap Keeper service including catering. In no manner this explanation can be interpreted to mean that all the services, including accommodation service, provided by a hotel can be charged to service tax as Mandap Keeper service. E. On a bare perusal of the definition of Mandap as provided in Section 66 of the Finance Act, 1994 shows that Mandap means any immovable property let out for a consideration for organizing any official, social or business function. The rooms let out f .....

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tes Vs. Commissioner reported in 2009 (16) STR 268 (Tribunal) G. The Appellant submits that in their own case for the period July 97 to June 1998, the Deputy Commissioner vide his order dated 28.02.2004 at para 12 has categorically held that element of room charges and other facilities provided in the room do not attract any service tax and the same is not required to be taken into consideration while calculating taxable value. This finding is not appealed against by the Revenue and in the absen .....

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the above submission the Appellant submits the demand on merits is not sustainable. Even assuming without admitting that any service tax is payable by the Appellant and without prejudice to above submissions, the Appellant prays for cum tax benefit, available abatement and cenvat credit. J. With respect to limitation, the Appellant submits that in the previous round of litigation, by the order dated 28.02.2004, the Deputy Commissioner specifically granted relief to the Appellant on limitation by .....

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acts should not sustain. K. Therefore, the Appellant submits that without prejudice to their submission that the entire demand is not sustainable on merits, the demand for the extended period and penalties are certainly not sustainable in the given facts and circumstances. The Appellant also prays for benefit of section 80 of the Finance Act, 1994 for waiver of penalties in the present facts and circumstances. 3. Shri M.K. Sarangi, Ld. ADC (AR) appearing on behalf of the revenue reiterates the f .....

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dap Keeper Service but not including the room charges whereas for the purpose of service tax gross value of services should be taken for payment of service tax. There is no abatement or exemption provided in respect of part of the service charge of Mandap Keeper Service on room service. Therefore, in the absence of such provision, the appellant is supposed to consider the total value which includes banquet, food, hotel, rooms etc. and thereafter 40% abatement on such amount service tax should ha .....

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he revenue sought to levy service tax on the entire value i.e. including the value of room charges. We have observed that in the appellant's own case, this Tribunal vide Order no.A/86950- 86951/17/STB dated 13.04.2017 has observed as under:- 8. In view of the foregoing we hold that both the lower authorities were in error in coming to a conclusion that the appellant needs to be taxed under Mandap Keeper Service for the entire amount of the room rent collected by them. 9. In yet another angle .....

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oom rent subject to further abatement as per Notification No.21/97-ST dated 26/06/1997. It has been informed to the bench that this order of the adjudicating authority has not been challenged by both the sides. If that be so, in our considered view Revenue cannot raise the same issue again which has attained finality intra-parties. 10. In view of the foregoing, we hold that the impugned orders are unsustainable and liable to be set aside and we do so. The impugned orders are set aside and the ap .....

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Vs. CCE - 2013 (31) STR 480, the Tribunal held as under:- 4. After hearing both sides we find that the Tribunal in the case of Merwara Estates v. C.C.E., Jaipur reported in 2009 (16) S.T.R. 268 (Tri.-Del.) has held that renting of hotel rooms cannot be held to be covered by the definition of Mandap Keeper inasmuch as the hotel has an identity, personality and function quite distinguishable from that of a mandap. In any case, we find that the activity of giving hotel rooms to the customers, who .....

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rvice is not sustainable. The same is accordingly set aside and the appeal is allowed with consequential relief to the appellant. ii) In the case of CCE Vs. Taj Hari Mahal - 2017-TIOL-909-CESTAT-DEL, the Tribunal held as under:- 5. We have heard both the sides and perused the appeal the records. We find that the department held the view that the charges collected for letting out rooms for accommodating guests has to be added in the gross value for the purpose of service tax liability under " .....

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of Rambagh Palace Hotels Pvt. Ltd. Vs. Commissioner of Central Excise, Jaipur, 2013 (31) S.T.R 480 (Tri. - Del) = 2012-TIOL-673-CESTAT-DEL. The Tribunal observed as below: "After hearing both sides we find that the Tribunal in the case of Merwara Estates V. C.C.E., Jaipur reported in 2009 (16) S.T.R. 268 (Tri. - Del.) = 2009-TIOL-871-CESTAT-DEL has held that renting of hotel rooms cannot be held to be covered by the definition of "Mandap Keeper" inasmuch as the hotel has an ident .....

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