Appellants' Challenge Dismissed for Lack of Evidence on Room Rent Calculation

The Tribunal dismissed the appellants' challenge to the demand confirmed for Mandap Keeper service, emphasizing the lack of evidence regarding the actual room rent charged. Despite the appellants' reliance on previous decisions excluding room rent from the assessable value, they failed to provide proof of the quantum of room rent in this case. The Tribunal noted the absence of documentation on the number of rooms rented alongside the halls and whether the rooms were separately charged. Without substantial evidence supporting their claims, the appeals were dismissed.

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Appellants operate a hotel with banquet/conference facilities and challenge a service-tax demand treating room charges as part of the assessable value for Mandap Keeper service. Appellants relied on Tribunal precedents holding that "room rent is not to be taken as consideration towards Mandap Keeper service" and on an earlier adjudication where 80% of total charges was treated as room rent. Revenue argued appellants produced no bills or documentary proof segregating room rent from consolidated lumpsum receipts for functions. Tribunal found no evidence showing how many rooms (if any) were rented, whether rooms were complimentary, or that room rent was separately recovered; prior favorable adjudication included a Chartered Accountant certificate, which is absent here. Because appellants failed to discharge the evidentiary burden to segregate room rent from banquet/conference charges, the demand was sustained and the appeals were dismissed.

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