Air-conditioned restaurant-cum-bar taxability upheld where licence records confirmed the qualifying condition and no proof of discontinuance existed.

A restaurant-cum-bar with air-conditioning in any part of the establishment, while licensed to serve alcoholic beverages, fell within the taxable service category under the pre-2012 regime, and the post-01.07.2012 regime also covered the service portion in food and beverage supply as a declared service. The assessee's own licence application and renewal history supported the existence of the qualifying condition for taxation, and a bare statement that the air-conditioner had been removed was not accepted without contemporaneous proof or communication to the authorities. On that basis, the extended period of limitation, interest, and penalties were sustained.

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Issues: Whether the appellant's restaurant-cum-bar was liable to service tax on the basis that it had air-conditioning facility during the relevant period, and whether the demand, interest, and penalties were sustainable, including invocation of the extended period of limitation.

Analysis: The relevant statutory framework treated a restaurant having air-conditioning facility in any part of the establishment, while licensed to serve alcoholic beverages, as a taxable service under the pre-2012 regime, and the post-01.07.2012 regime also covered the service portion in food and beverage supply as a declared service. The record showed that the appellant had declared air-conditioning in its licence application, the State Excise authorities renewed the bar licence for the relevant years, and there was no documentary proof that the air-conditioning facility had been discontinued and communicated to the concerned authorities. The statement claiming removal of the air-conditioner was not accepted in the absence of corroboration. The Tribunal also found the appellant's conduct sufficient to sustain the extended period and the associated penalties.

Conclusion: The restaurant was held liable to service tax for the relevant period, the extended period of limitation was held applicable, and the demand with interest and penalties was upheld.

Ratio Decidendi: Where the assessee's own licence records and renewal history establish the existence of the statutory qualifying condition for taxation, a bare contrary statement unsupported by contemporaneous evidence is insufficient to defeat service tax liability or resist invocation of the extended period.

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