Undefined exemption terms are read in ordinary sense, so museum admission fees for vintage-car displays can qualify for service tax relief.

Where an exemption entry uses the term "museum" without definition, it is construed in its ordinary and popular sense. On that basis, a dedicated hotel display area containing vintage or historical cars, open to visitors on payment of entry fee, can qualify as a museum for the exemption for admission to a museum. The fact that the cars were also used for shooting or remained in running condition did not alter the character of the display area, particularly where tax had already been discharged on the hire activity. The entry fee was therefore treated as exempt from service tax, and the demand on that fee was unsustainable.

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Issues: Whether the area in the hotel displaying vintage cars and open to visitors on payment of entry fee qualified as a "museum" for the purpose of the exemption under Serial No. 45 of the service tax exemption notification, and whether the entry fee was exempt from service tax.

Analysis: The exemption under Serial No. 45 covered services by way of admission to a museum, and the term "museum" was not defined in the taxing statute or the exemption notification. In such a situation, the expression had to be understood in its ordinary and popular sense. The display area contained historical or vintage cars, was specifically earmarked for visitors, and entry fee was charged for admission to that area. The fact that the cars were in running condition and were also let out for shooting did not alter the character of the area as a museum for the purpose of the exemption, especially when tax had already been discharged on the hire activity. The notification also imposed no additional condition for availing the exemption.

Conclusion: The entry fee was consideration for admission to a museum and was covered by the exemption. The demand of service tax on the entry fee was unsustainable.

Final Conclusion: The order under challenge was set aside and the appeal was allowed.

Ratio Decidendi: Where a term used in an exemption entry is undefined, it must be interpreted in its ordinary and popular sense, and admission charges for access to a dedicated display area containing historical objects can fall within an exemption for admission to a museum.

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