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2019 (4) TMI 243

limentary. However, wherever the appellants have only let out the said banquet/ conference halls for use and charge for the same, appropriate Service Tax is payable - Demand of Service Tax on Mandap Keeper shall be restricted to the cases where the banquet halls/conference rooms have been allowed to be used per se. - Beauty treatment and health & fitness service - Hair cutting services - demand of service tax - Held that:- The main dispute between the Department and the appellants is about providing the bifurcation and documentary evidence thereof. We find that wherever the appellants have provided the services of ‘therapeutic massage’, the same shall not be liable for Service Tax and wherever, massage per se is provided Service Tax shall be paid. Similarly, it was contended by the Department that the appellants have not produced any documentary evidence that they were doing only hair cutting/dying during the period 01.08.2002 to 16.06.2005 - Service Tax in respect of ‘Beauty Treatment and Health and Fitness Centre’ shall be re-computed after allowing cum-duty benefit. - Club or association Service - Membership fee - demand of service tax - Held that:- It was held in number .....

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Hotels Pvt. Ltd., have been providing various services like providing hotel rooms, food, conference rooms, massage centres, health & fitness centres, beauty treatment, laundry services, etc., to their customers. Officers of Anti-Evasion of Service Tax Commissionerate, Bangalore have investigated into the accounts of the appellants and a SCN was issued which was confirmed by Commissioner of Service Tax vide Order No. 55/2008 dated 30.11.2008 which is under appeal. 2. Learned Counsel for the appellants has submitted that the demand confirmed against the appellants is against the following categories (i) Mandap Keeper (ii) Club /Association (iii) Beauty treatment & health and fitness centre (iv) Dry Cleaning (v) Internet Café and (vi). Business Auxiliary Service 2.1. As regards the Service Tax under the category of Mandap Keeper, he submitted that they provided services to guests occupying the hotel rooms which were only short-term accommodation of hotel rooms involving a package to the guests. They were charged only for room accommodation and supply of food & beverages. As a complimentary use of conference hall was allowed and no charges were collected. Letting out .....

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rs. 2.3. Learned Counsel further submitted that hair cutting services were not falling under taxable service of beauty treatment in Sections 65(16) & 65 (105) (zq). TRU Circular dated 01.08.2002 clarified that beauty treatment shall not include hair cutting and shaving. Further, hair cutting, hair dying/ dressing were specifically included in beauty treatment only from 16.06.2005. Also, dying services were exempt vide Notification No. 11/2002-ST dated 01.08.2002 (till 16.06.2005). He also submitted that the Department relied upon their profit & loss account. The value of therapeutic massage and hair cutting and/or hair dying needs to be excluded from the value and cum-duty benefit needs to be given. 2.4. Learned Counsel submitted that the demand under club or association is not sustainable as any services rendered by club or association to its members are not taxable. He relied upon the following cases: Ranchi Club Ltd v. UOI, 2012 (26) STR 401 (Jhar.). Sports Club of Gujarat Ltd v. UOI, 2013 (31) STR 645 (Guj.) CCE v. Surat Tennis Club, 2016 (42) STR 821 (Guj.). Green Environment Services Coop. Society Ltd. v. UOI, 2015 (37) STR 961 (Guj.). CST v. DLF Golf Resorts Ltd, 201 .....

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7) ELT 3 (SC) is clearly applicable. the appellants have not produced any documentary evidence that they were providing only hair cutting/ dying service during the period of exemption i.e. 01.08.2002 to 16.06.2005 under Notification No. 11/2002 and to prove that they have discharged the tax liability out of CENVAT credit. the appellants have not given any documentary proof and break up for the therapeutic and non-therapeutic massages provided to the clients. Regarding internet café service, Learned Authorized Representative submitted that they have only mentioned that majority of the income was from STD & ISD calls. However, they did not produce any bills or ledger copies. the appellants are paid 20% of the sales value by Himalaya Drug Company. This cannot be called renting out of premises. members of the club are given various facilities like Spa, Swimming Pool, Health Club, Sport facilities etc. to the members of the Club on payment of fee. Therefore, it is not a fee for mere association. though they have not provided dry cleaning facility to their customers, bifurcation and different accounts have not been given. Lastly, he submitted that the appellant had not declare .....

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et café, we find that the main dispute between the Department and the appellants is about providing the bifurcation and documentary evidence thereof. We find that wherever the appellants have provided the services of therapeutic massage , the same shall not be liable for Service Tax and wherever, massage per se is provided Service Tax shall be paid. Similarly, it was contended by the Department that the appellants have not produced any documentary evidence that they were doing only hair cutting/dying during the period 01.08.2002 to 16.06.2005. Regarding the internet café, we find that the appellants claim that a small portion was for internet services and most of the receipts were for usage of ISD/STD telephone. We find that necessary bifurcation may be submitted to the authorities for computation of applicable duty. Similarly, the appellants may produce proof regarding their claim that they have not provided dry clean service to their customers. Wherever they have provided such services to the customers, the same shall be chargeable to Service Tax. For this reason, we find that the case needs to be remanded back to the original authority for appreciation of evidence .....

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