Tribunal decision: Upheld service tax liability for various services, interest & penalties imposed. Extended time limit invoked.

The tribunal upheld the service tax liability under Mandap Keeper Services, Renting of Immovable Property, Sale of Space for Advertisement, and Club or Association Service. The appellant was found liable to pay interest and penalties under Sections 76 and 77 of the Finance Act, 1994. However, the demand for Business Support Services was set aside. The invocation of the extended time limit for demand was upheld, except for Renting of Immovable Property service. Penalties under Section 78 were upheld, except for Renting of Immovable Property service.

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Issues Involved:
1. Service tax liability under Mandap Keeper Services.
2. Service tax liability on renting of immovable property.
3. Service tax liability under the category of Sale of Space or Time for Advertisement.
4. Service tax liability under the category of Club or Association Service.
5. Service tax liability under the category of Business Support Services (BSS).
6. Invocation of extended time limit for demand.
7. Imposition of penalties under Sections 76, 77, and 78 of the Finance Act, 1994.

Detailed Analysis:

1. Service Tax Liability under Mandap Keeper Services:
The appellant admitted to the service tax liability under Mandap Keeper Services. The tribunal upheld the demand along with interest.

2. Service Tax Liability on Renting of Immovable Property:
The service falls within the definition of taxable service as per Section 65(105)(zzzz) of the Finance Act. The vires of the levy were upheld by the Bombay High Court and Delhi High Court. The demand of service tax on this activity by the appellant is sustainable in law, subject to the outcome of the appeals pending before the Supreme Court.

3. Service Tax Liability under the Category of Sale of Space or Time for Advertisement:
The appellant allowed SFIPL and TFPL to use advertising space, which falls under the taxable service category as per Section 65(105)(zzzm) of the Finance Act. The tribunal held that the appellant is liable to discharge service tax on the sale of space for advertisement. The argument of being a sub-contractor and revenue neutrality was rejected.

4. Service Tax Liability under the Category of Club or Association Service:
The appellant claimed exemption under Section 65(25a) as a charitable organization. However, the tribunal held that the appellant does not qualify as a charitable organization for service tax purposes and is liable for service tax on membership fees. The tax demand should be recomputed excluding bar sales.

5. Service Tax Liability under the Category of Business Support Services (BSS):
The tribunal found that the subsidies received from BCCI do not constitute Business Support Services as they are not in relation to business or commerce. The demand under BSS was set aside.

6. Invocation of Extended Time Limit for Demand:
The tribunal upheld the invocation of the extended period for demand, finding that the appellant suppressed facts with an intent to evade tax. The argument of bona fide belief was not accepted.

7. Imposition of Penalties under Sections 76, 77, and 78 of the Finance Act, 1994:
- Section 76: Penalty for failure to pay service tax was upheld.
- Section 77: Penalty for non-compliance with statutory provisions was upheld.
- Section 78: Penalty for suppression of facts with intent to evade tax was upheld except for renting of immovable property service.

Majority Order:
1. Confirmation of service tax demands under Mandap Keeper Service, Club and Association service, Renting of Immovable property service, and Sale of space for advertisement service is sustainable. The tax demand for Club & Association service should exclude bar sales.
2. The appellant is liable to pay interest on the service tax demands.
3. The appellant is liable to penalties under Sections 76 and 77.
4. The appellant is liable to penalty under Section 78 except for Renting of Immovable property service.
5. The demand of service tax under Business Support Services is set aside, with no interest or penal liability.

Note: The judgment included a dissenting opinion by one member who disagreed on the charitable status of the appellant and the imposition of penalties, which was resolved by a majority decision.

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