TMI Blog2018 (12) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of service tax. Time Limitation - Penalty - Held that:- No malafide intention to evade payment of service tax can be attributed to the appellant - non-payment of service tax is only as an omission on the part of the appellant - demand restricted to the normal period of limitation along with interest under Section 75 of the Finance Act, 1994 - penalty also set aside for same reason by invoking section 80. Appeal allowed in part. - S.T. Appeal No.70/08 - FO/A/76941/2018 - Dated:- 14-11-2018 - SHRI P.K. CHOUDHARY, MEMBER (JUDICIAL) And SHRI V. PADMANABHAN, MEMBER (TECHNICAL) Shri R.C. Agarwal, Advocate for the Appellants(s) Shri S. S. Chattopadhyay, Supdt. (AR) for the Revenue ORDER Per Bench : The pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e submitted that the activities for which auditorium was let out, have been held to be liable to payment of service tax in the following case laws : (i) Gadkari Rangayatan Vs. CST, Mumbai II : 2014 (36) STR 155 (Tri.-Mumbai) ; (ii) Secretary, Town Hall Committee Vs. CCEx., Mysore : 2007 (8) STR 170 (Tri.-Bang.). 6. Heard both sides and perused the appeal records. 7. The appellant has rented out their auditorium for carrying out cultural activities, such as, Dance, Drama etc. and recovered rental charges for the same. The question is whether such charges recovered are liable for payment of service tax under the category of Mandap Keepers Services as defined under Section 65(67) read with Section 65(105)(m) of the Finance Act, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... drama, many people attend for watching the programme. We cannot say that there is no meeting of minds. The learned Advocate wants to restrict the scope of function only to certain ceremonies like marriage. We are afraid that there is no justifiable reason for limiting the scope of the term social function in such a manner. Thus, this Tribunal held that cultural functions are also social functions and renting out the hall for cultural functions would attract Service Tax liability. The said decision of the Tribunal was also upheld by the Hon ble High Court of Karnataka reported in 2011 (24) S.T.R. 172 (Kar.). This Tribunal also followed the ratio of the said decision in the case of Manager, Ravindra Kalakshetra (supra) and also in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment. The appellant would also be liable to pay interest on the recomputed demand in terms of Section 75 of the Finance Act, 1994. 4.5 As regards penalties imposed on the appellants, we hold that there cannot be any mala fide intention on the part of the appellant being a Government body and, therefore, we set aside the penalties imposed on the appellants under Section 80 of the Finance Act, 1994. 8. By following the above decision, we come to the conclusion that the appellant will be liable to payment of service tax. But keeping in view the facts and circumstances of the case, we are of the view that no malafide intention to evade payment of service tax can be attributed to the appellant. By considering the non-payment of s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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