2018 (4) TMI 767 - AT - Service Tax

Tribunal Upholds Service Tax Demand for Club Services, Appellant to Re-calculate Liability

M/s. Triveni Kala Sangam Versus C.C.E., Delhi-I

The Tribunal confirmed the service tax demand on the appellant for mandap keeper service and club & Association service during 2010-11 and 2011-12. ... Valuation - includibility - service tax element - mandap keeper service - club & Association service - Held that: - since the appellant is not disputing the service tax demand confirmed under the taxable category of mandap keeper service and club and association service, we upheld the demand confirmed against it for providing such taxable service and direct the original authority to re-quantify the exact demand - appeal allowed by way of remand. Issues:1. Confirmation of service tax demand for mandap keeper service and club & Association service during 2010-11 and 2011-12.2. Applicability of Section 67(2) of the Finance Act, 1994 for re-quantification of tax liability.3. Direction for re-quantification of tax liability by the original authority based on Tribunal's order.Analysis:1. The judgment deals with the confirmation of service tax demand on the appellant for providing mandap keeper service and club & Association service during 2010-11 and 2011-12. The appellant did not contest the adjudged demand for both services.2. The appellant's advocate pleaded for the benefit of Section 67(2) of the Finance Act, 1994 for re-quantification of tax liability specifically for mandap keeper service. The Tribunal's Final Order No.54840/2017 directed the original authority to re-quantify the tax liability by considering the gross value inclusive of service tax, if no separate service tax was indicated in the documents issued by the appellant.3. The Tribunal upheld the service tax demand for the taxable services provided by the appellant but directed the original authority to re-quantify the exact demand in line with the observations made in the previous order dated 05.07.2017. The re-calculation, if resulting in lesser tax liability, would also lead to a suitable reduction in the penalty applicable. The appeals were disposed of accordingly.This judgment emphasizes the importance of proper quantification of tax liability in line with the provisions of the Finance Act, 1994 and the directions provided by the Tribunal in similar cases. It highlights the need for accurate documentation and verification to ensure correct assessment of tax liabilities for taxable services provided by the appellant.