9911796707
TMI Blog2018 (12) TMI 1186X X X X Extracts X X X X X X X X Extracts X X X X ..... IO No. 18/2012- Adjn. (ST) (Commr.) dt. 18.07.2012 2. ST/31099/2016 OIO No. HYD-SVTAX-000-COM-70-16-17 dt. 29.08.2016 3. ST/30376/2016 OIO No. HYD-SVTAX-000-COM-49&50-15- 16 dt. 29.02.2016 4. ST/30476/2016 The appellant is a charitable society registered as such and is engaged in organizing industrial exhibitions. They have been paying service tax in relation to Business Exhibition Services. Show cause notices were was issued to the appellant and demands were confirmed with respect to the following amounts as follows: i) The value of the entry tickets sold to general public under the category of Business Exhibition Service: Learned Counsel for the appellant argues that the sale of entry tickets to general public is not a taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded by means of rides, gaming devices or bowling alleys in amusement parks, amusement arcades, water parks, theme parks or such other places but does not include a place within such facility where other services are provided. He would argue that the amusement facilities provided in the exhibition grounds clearly put them in the negative list and therefore no service tax can be collected even after 01.07.2012. ii) The sale or transmission of electricity during the exhibition: The appellant had sold electricity to exhibitors. Learned Counsel submits that they have a contract with the Andhra Pradesh State Electricity Board under which they receive electricity from them and in turn, sell it to the exhibitors during the period of exhibition a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity is exempted during the period of dispute vide Section 11C Notification No. 45/2010-ST dated 20.07.2010. iii) Publicity income which they received for sale of space or time for advertisement under advertisement service during the period 2005-2006 to 2009-2010: Learned Counsel submits that he is not pressing this point and they have already paid the service tax along with interest on delayed payment of service tax and only contesting the imposition of equivalent penalty under Section 78 is set aside. iv) Short payment of service tax paid by the appellant on the Business Exhibition and Mandap keeper services: Learned Counsel submits that they have paid service tax during the relevant period and they are not clear to how this differen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel argued that the demand of interest on this amount does not sustain. vi) Renting of immovable property service: Learned Counsel submits that before the issuance of show cause notice itself, they have paid the service tax this amount along with interest but are only contesting of Rs. 18,059/- being the service tax proposed to be levied for the period April, 2007 on the ground that renting of immovable property service became a taxable service only on 01.06.2007. He also prays that no penalty may be imposed on them under Section 78 of the Act on this count as no penalty is imposable in view of Section 80(2) inserted by the Finance Act, 2012. Learned Counsel further argues that they are a charitable society and have no intention to evad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts' claim that their exhibition is merely an amusement facility does not hold any water. It is true that there are also amusement facilities within the premises but that does not characterize it as an amusement facility. The exclusion of amusement facility under Section 65 B(9) also clarifies that amusement facility does not include a place within such facility where other services are provided. We, therefore, hold that the appellant is liable to pay service tax w.e.f. 01.07.2012 on the value of the entry tickets sold to general public. 5. As far as the sale of electricity is concerned, the Department seeks to charge these reimbursable expenses in terms of Rule 5(1) of Service Tax (determination value of service) Rules, 2006. This rule has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of service tax on stall rentals received is liable to interest and confirmed penalty and we do so. 7. As far as the demand and renting of immovable property service is concerned, we find that the appellants paid the service tax along with interest and is only contesting the rent pertaining to the months of April and May, 2007 on the ground that the renting of immovable property became a taxable services vide Section 65 (105) (zzzz) of the Finance Act, 1994 is w.e.f 01.06.2007. We find strong force in the arguments of the appellant and hold that the demand to this extent needs to be set aside and we do so. 8. As far as the imposition of the penalties under Section 78 on the appellant is concerned, we find that the appellant is a charita ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
