Guest house accommodation service tax applies despite charitable character where no complete exemption is proved

Guest house accommodation for pilgrims fell within the service tax entry covering accommodation provided by a hotel, inn, guest house, club or camp-site for a continuous period of less than three months. No complete exemption was established, and a partial exemption did not remove liability. The absence of a profit motive did not displace the statutory levy. The provider was therefore liable to registration and service tax on the guest house accommodation service, and the writ petition failed with the demand and registration requirement upheld.

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Issues: Whether the petitioner's guest houses were liable to service tax under the accommodation service entry and whether any exemption applied.

Analysis: The petitioner was running guest houses for pilgrims, which fell within the scope of the service tax entry covering accommodation provided by a hotel, inn, guest house, club or camp-site for a continuous period of less than three months. No absolute exemption was shown to have been granted, and the reference to a partial exemption did not exclude liability. The absence of profit motive did not displace the statutory levy.

Conclusion: The petitioner was liable to be registered and to pay service tax on the guest house accommodation service.

Final Conclusion: The writ petition failed and the service tax demand and registration requirement were upheld.

Ratio Decidendi: Where a statutory service tax entry expressly covers guest house accommodation and no complete exemption is established, the provider is liable to registration and tax irrespective of charitable or religious character.

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