TaxTMI 
TaxTMI 
TaxTMI 
2011 (11) TMI 290
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.... intelligence that the appellant have been providing the services of Mandap Keeper without getting themselves registered and without paying any service tax visited their premises on 22nd February 2005 and resumed some records. On inquiry with the Appellant and scrutiny of the records, it appeared that the services provided by them were Mandap Keeper service which were taxable since 1/7/97 and while during the period from 20th December 2002 to 8th May 2005, they had received total amount of Rs. 64,13,300/- by renting their premises - Heera Panna Guest House and Tiranga Garden to their clients on which their service tax liability alongwith education cess would be Rs. 3,47,937/- they have not paid any tax. On this basis, a show cause notice da....
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....function or not, an explanation was added in Section 65(77a) w.e.f. 1/6/07 clarifying that for the purpose of this clause, social function includes marriage, even for the period prior to 1/6/07, it cannot be construed by any stretch of imagination that marriage was not a social function. 1.2 Against the above order of the Commissioner (Appeals), while the Department has filed appeal No. ST/507/07 against the portion of the order holding that the appellant's activity is classifiable as Pandal or Shamiana and was not taxable during the period prior to 10/9/04, M/s Heera Panna Guest House has filed appeal No. ST/638/07 against the part of Commissioner (Appeals)'s order holding that even during period to 1/6/07, the marriage was a social funct....
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.....f. 1/6/07, that a specific provision was made, that for the purpose of this clause, the social function would include marriage function, that this explanation cannot be given a retrospective effect and, therefore, during the period prior to 1/6/07, the marriage function cannot treated as social function, that in view of this, the Commissioner (Appeals)'s order upholding the service tax demand for the period w.e.f. 10/9/04 is also not sustainable and as such neither any service tax is demandable from the appellant nor any penalty is imposable on them. 2.2 Shri Sonal Bajaj, the learned Senior Departmental Representative, assailed the impugned order dropping the service tax demand for the period prior to 10/9/04 by reiterating the grounds of....
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....ing, decorations and catering service. Under Section 65(105)(m) of the Finance Act, 1994, service provided to a client by a Mandap Keeper in relation to use of Mandap in any manner including the facilities provided to the client in relation to such use and also the services, if any, provided as a caterer, was taxable. This service was taxable since 1997. The words 'Mandap' and 'Mandap Keeper' are defined in Section 65(66) and 65(67) respectively as under :- "Mandap means any immovable property as defined under Section 3 of Transfer of Property Act, 1882 and includes any furniture fixture, light fittings, floor covering therein laid down for organising any official, social or business function." "Mandap Keeper means a person who allows tem....
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....or means a person engaged in providing any service either directly or indirectly in connection with the preparation, arrangement erection or decoration of a Pandal or Shamiana and includes the supply of furniture, fixtures, light or light fittings, floor coverings and other articles of use therein." 6. By campaigning the definition of the service in relation to the use of Mandap and the definition of the service provided by Pandal or Shamiana contractor, it will be seen that while in the former the emphasis is on temporary occupation of Mandap, which is an immovable property under the control of Mandap keeper, by a client for consideration for organising any official, social or business function alongwith other facilities like lighting, pr....