TMI Blog2018 (10) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... other services are involved and predominant, therefore, the predominant of these other activities in buffet menu fall under the category of Mandap Keeper Services - In the absence of any sale contract between the appellant-assessee and its customers the appellant-assessee is not eligible for exemption under N/N. 12/2003-ST and are liable to pay service tax under Mandap Keeper Services within the normal period of limitation. Penalty u/s 76 of FA - Held that:- The act itself statutorily provides for waiver of penalty, since in the present case, there was a bona fide believe on the part of the appellant that their activities are not subject to service tax, based on the detail reasoning given above, therefore, there was a reasonable cause fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of Hotel, Banquet Halls and Restaurant from the single premises. There are various banquet halls of different sizes which the appellant-assessee allows for different functions like marriages, conferences, etc. The halls/rooms etc., let out by the hotel/restaurants is for a consideration for organizing social, official or business functions which are covered within the definition of Mandap Keeper Service and for which the appellant-assessee has obtained his service tax registration. 3. The respondent-assessed are having three fully air-conditioned banquet halls with four star facilities namely senator with lawn, royal room and kanha darbar. The bookings of these banquet halls are made in two ways. First booking of banquet halls under co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring activity and it is not disputed that the amount of renting of banquet hall and catering stood amortised in buffet menu, therefore, the supply of food/beverages in the banquet halls are not sale of food/beverages where other services were predominant. Predominance of these activities in buffet menu price appears to be service contract and false under the category of Mandap Keeper Services and such transactions of service tax was payable subject to abatement available to the respondent-assessed under Notification No.01/2006-ST, the learned Commissioner while relying upon decision of the Co-ordinate Bench of this Tribunal in the case of Sayaji Hotels limited vs. Commissioner of Central Excise, Indore reported at 2011 (24) STR 177 (Tri.-De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce Act. 6. The learned counsel for the appellant-assessee has submitted that the sale of food/beverages by the appellant-assessee is just a sale simplicitor to their customers (hosts). The transaction in question is not a composite transaction involving both sale and service the appellant-assessee is raising invoices for sale value of food and beverages the invoices evidencing the sale of the food is strictly in relation to the value of food sold and does not include any value of the services provided alongwith the sale of food. The appellant-assessee also argued that only the value of food is charged and the buffet menu does not include any banquet hall charges or other charges and has paid full value of VAT on the sale of food made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel also argued that the demand raised by the Revenue is time barred as an internal audit was conducted by the Department and in the verification report after perusing the documents no objection was raised to this effect for the same period and each and every document was examined and the audit party has recorded that nothing found incriminating. 8. The learned AR for the Revenue relied upon the impugned order. 9. Having heard the learned counsel for the appellant-assessee and the learned AR for the Revenue at length and after appreciating the facts on record we find that from the facts of the present case the booking of banquet hall on buffet menu basis consists of elements of renting and catering activity and it does not appear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bona fide believe on the part of the appellant that their activities are not subject to service tax, based on the detail reasoning given above, therefore, there was a reasonable cause for failure if any on the part of the respondent assessee to pay service tax although they filed ST-3 returns. The issue involved in the present appeal involves interpretation of complex legal provisions, as such in terms of Section 80 penalty under Section 76 are hereby set aside. 10. The Revenue has also preferred appeal against the dropping of demand imposed by extending the period of limitation on the ground that there was suppression on the part of the appellant-assessee who has not disclosed or included the booking of banquet under the composite banqu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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