TaxTMI 
TaxTMI 
2007 (6) TMI 489
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....t the town hall of the Corporation for cultural functions and organising of political events. The second appellant is Kalamandir, Department of Kannada and Culture, Government of Karnataka. They have a hall named "Kalamandir" for organising various functions, events and activities on temporary basis. Revenue proceeded against both the appellants for non-payment of service tax under the category of "mandap keeper". The appellants were aggrieved over the order of the lower authority and approached the Commissioner (Appeals). The Commissioner (Appeals) passed the impugned orders upholding the orders of the original authority. Aggrieved over the order of the Commissioner (Appeals), the appellants have come before this Tribunal for relief. Th....
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....aid decision has been rendered in a situation when the term "social function" was not clarified by any Explanation inserted in the Act itself and hence in the present context the same would be no longer a good law. The decision in the ADA Rangamandira Trust case [2007] 9 VST 465 (CESTAT-B'lore); [2007] 79 RLT 500 (CESTAT-Ban) has not considered the other activities (as distinct from functions like dance, drama, film shooting, etc.) as not falling within the purview of social function for levy of service tax under the category of mandap keeper. (iii) In respect of Appeal No.ST/44/2006, the period of demand is from April 1, 2000 to August 31, 2004 as suppression and wilful intention have not been established and the show cause notice h....
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....used just to mean ceremonies and it cannot be taken to mean that it would include all activities which are in the nature of promoting culture, language like Kannada language, dance, drama, etc. The scope of the term "social function" can be only such functions where there is a get together of individuals (whether relatives, friends or others) like a birthday party, marriage, house warming ceremony, kitty party, etc. The term "social" has been defined in Standard Dictionaries to mean "involving allies or confederates marked by or passed in pleasant companionship with one's friends or associates". Thus, when it is not involving pleasant companionship with friends, such an event or an activity can never be considered as falling within t....
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....lanation.-For the purposes of this clause, 'social function' includes 'marriage'." The learned Advocate has come to the conclusion that social function, as far as the Finance Act, 2007 is concerned, means only marriage and similar functions. We are afraid that the above conclusion is not correct. The Explanation says that social function includes marriage. Since it is an inclusive definition, social function is not restricted to marriage alone. Therefore, to say that in view of this Explanation, this Bench's decision in the case of ADA Rangamandira Trust [2007] 9 VST 465 (CESTAT-B'lore); [2007] 79 RLT 500 (CESTAT-Ban) is no longer good law, is not correct. The Explanation inserted on May 11, 2007 cannot nullify th....
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...."cultural event" and "social function". According to him, organising a dance or drama cannot be called as organising a social function. In his view, the meaning of social function cannot be stretched to include what the Legislature has not intended. In the Rangamandira decision [2007] 9 VST 465 (CESTAT-B'lore); [2007] 79 RLT 500 (CESTAT-Ban) relying on the Board's clarification of 1997, we held that programmes of dance, drama and music are social functions. According to the Oxford Advanced Learners Dictionary, "function" means "a social event or official ceremony". The term "social function" is very comprehensive. Cultural events are only a subsect of social functions. In our view, any cultural event would also be considered as a....
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....integral part of our social ethos and is in fact a form of social intercourse. Programmes of dance, drama and music are social functions. In case rental is being charged by the owner or caretaker of any premises for holding such functions, they are liable to pay service tax. Apparently, such renting out of premises is for a monetary consideration and thus has a pecuniary aspect. In case no charges/rental is being paid, i.e., the premises are given out free of cost to hold such function, there would be no service tax liability. As regards Kannada film shooting and political meetings, it is very clear that they cannot be considered as social functions. Therefore, such instances have to be excluded from the levy of service tax in the catego....