TMI Blog2019 (4) TMI 243X X X X Extracts X X X X X X X X Extracts X X X X ..... ny 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 of cases that in view of the mutuality of interest and looking into the fact that the members of the club are providing services to themselves; no Service Tax is leviable on the same - demand set aside. Dry cleaning services - internet caf - demand of service tax - Held 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 fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry 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 hotel rooms, supply of food beverages is not liable to Service Tax. He submitted that provision of short-term accommodation came into Service Tax levy only on 01.05.2011 and was struck down by the Hon ble High Courts of Delhi and Kerala as unconstitutional. The impugned order has seriously erred in demanding Service Tax on room tariff on which luxury tax was being levied by VAT Department. The appellants have discharged the Service Tax during April 2000 to March 2005 wherever they have rented out the conference hall per se as it was in the nature of Mandap Keeper Service. He submitted that demand which is attributable to resort/hotel accommodation with food beverages is no longer res integra in view of the following decisions: Dukes Retreat Ltd v. CCE, 2017 (3) STR 229 (Tri.) Merwara Estates v. CCE, 2009 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, 2018 (12) GSTL 39 (Tri. Del.). Bangalore Golf Club v. CST, Final Order No. 20082/2019 as reported in 2019-TIOL-321-CESTAT-BANG. 2.5. Regarding the dry clean service, he submitted that they had 3 wet cleaning machines and only 1 dry cleaning machine. The only 1 dry cleaning machine was used for the internal purpose of the Resort like cleaning the bed sheets, pillow covers, curtains of the rooms or uniforms of the service personnel. No guest clothes were dry cleaned. As wet cleaning was not under the ambit of Service Tax, no Service Tax can be levied on them. 2.6. Learned Counsel submitted regarding the internet caf that there is a telephone installed in the business centre which provided STD and ISD telephone from the guests who used the facility. They do no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a 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 declared all the categories of service provided by them and the taxable value thereof. Mere submission of Returns regularly is not enough for the Department to know the activities of the appellant. Therefore, extended period is invokable and penalties are imposable in view of the following cases: (i). CCE Aurangabad v. Padmashri V.V. Patil S.S.K. Limited, 2007 (215) ELT 23 (Bom-HC) (ii). Sai Machine Tools Pvt Ltd, 2006 (203) ELT 12 (MP-HC) (iii). Dharmendra Textile Processors, 2008 (231) ELT 3 (SC) (LB) 4. Heard both sides and perused the records of the case. 5. We find that most of the issues raised in the present appeal are no longer res integra as regards the demand of Service Tax from the appellants as Mandap Ke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 given by the appellants and to compute the Service Tax liability. 5.3. We find that the appellant s arguments on the Business Auxiliary Service rendered by them to M/s Himalaya Drug Company are only a renting of premises is not acceptable. It is not the appellant s case that they are receiving a fixed rent. They are getting a percentage of sales as the remuneration. They have allowed their premises to be utilized for the display and also providing sales personnel and packing materials and are offering facilities for branding of the products in a place outside the shop. This certainly amounts to promotion of business therefore charging of Service Tax under the BAS category is tenable. 5.4. The ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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