Compulsory donations for hall booking form part of taxable mandap keeper value; extended limitation also applies.

Compulsory donations collected as a condition for booking a hall were treated as part of the gross amount received for mandap keeper service because the payment was linked to the hiring of the hall and was not a voluntary donation outside taxable value. Non-disclosure of such collections to the Revenue justified invocation of the extended period of limitation. The prior practice and surrounding circumstances did not warrant enhancement of the already reduced penalty, so the demand was upheld, the assessee's challenge failed, and the Revenue's request for higher penalty was rejected.

---

---

Issues: (i) Whether amounts collected as donations for booking the hall were liable to be treated as part of the gross amount received for providing mandap keeper service; (ii) Whether invocation of the extended period of limitation and the refusal to enhance penalty were sustainable.

Issue (i): Whether amounts collected as donations for booking the hall were liable to be treated as part of the gross amount received for providing mandap keeper service.

Analysis: The hall was booked only on the condition that the service recipient would pay the donation. Since the payment was compulsory for booking and was linked to the service of hiring the hall for social functions, the amount could not be treated as a voluntary donation outside the taxable value.

Conclusion: The amount collected as donation formed part of the gross amount for mandap keeper service, against the assessee.

Issue (ii): Whether invocation of the extended period of limitation and the refusal to enhance penalty were sustainable.

Analysis: The assessee had not disclosed collection of donations to the Revenue while booking the hall, so the extended period was correctly invoked. As regards penalty, the prior practice and surrounding circumstances showed no warrant for enhancement beyond the reduced amount already imposed.

Conclusion: The extended period of limitation was rightly invoked, and the reduced penalty was not liable to be enhanced.

Final Conclusion: The demand was upheld, the assessee's appeal failed, and the Revenue's appeal for enhancement of penalty was also rejected.

Ratio Decidendi: Amounts collected as compulsory donations as a condition for booking hall services form part of the taxable gross amount for mandap keeper service, and nondisclosure of such collections justifies invocation of the extended period of limitation.

---