TaxTMI 
TaxTMI 
2003 (11) TMI 1
X X X X Extracts X X X X
X X X X Extracts X X X X
....ities in India or anywhere else in the world. To undertake promotion of exports and to explore new markets for traditional items of export and develop exports of new items with a view to maintaining, diversifying and expanding the export trade." 2. ITPO organises trade fairs in its Pragati Maidan complex. Business participants in those trade fairs hire out halls/stalls belonging to ITPO for the purpose of displaying their products and to carry out business operations during the fair. These stalls are hired out to participants in fairs organised by parties other than ITPO. The Election Commission of India also hired out ITPO's premises for storing ballot boxes, election materials and for counting votes. Rent was paid to ITPO in all these cases of hiring of its stalls. In the order impugned in this appeal Commissioner of Central Excise (Appeals), Delhi has held that ITPO functions in renting out its stalls as a "mandap keeper" and rents received are liable to service tax as value of "service provided to client by a mandap keeper in relation to the use of a mandap". 3. In the present appeal, ITPO has contended that the renting out of premises to participants of tr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he contrast between functions and work. It is pointed out that in the context of the definition, organising a function has the meaning of organising an impressive, elaborate or formal ceremony. According to the appellant this is in contrast with the day-to-day carrying out of official work, social activities or business. As against this the Revenue's contention is that the distinction sought to be made by the appellants is incorrect. It is pointed out that the terms 'business' and 'function' are inter-changeable and as per the Collins Paper Back English Thesaurus the word "function" also means "activity". The Revenue contends that there is no distinction to be made between business activity and business function. It is also pointed out that according to World Book Encyclopaedia Part-II business includes the activities of all commercial producers of goods and services. Thus the meaning of the term 'business' has to be read along with the term "function" and "business function" would mean functions/ activities related to business. 7. The appellant has also emphasised that a trade fair is not ceremonial business function but a market itself. It is being pointed out that Encyc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....far less expense than would be incurred by representatives visiting even a small percentage of the group of interested parties assembled. Exhibitors can observe what their competitors are doing, see what new lines they have on hand and what prices they are charging. The visitor, on the other hand, is offered an optimum opportunity to weigh the advantages and disadvantages of a whole series of competitive products and to discuss prices and terms. He can also talk over any necessary alterations to adjust the product to his own particular needs. He can see the product, perhaps watch it in motion, tough it, handle its, may be taste it. While the primary aim of the modern international fair is to develop a market rather than on the spot sales, the "old fashioned" market place type of fair, where the end consumer makes direct purchases, is still going strong. Although mainly of regional scope, fairs of this latter kin exist and prosper in both industrialised and developing countries." 3. Organisers Manual for Effective Participation in International Trade Fairs" ESCAP Trade Promotion Centre of the United Nations. "Trade fairs are not simply a matter of prestige. The bri....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Election Commission. At times, when the work load increases and cannot be carried out from its regular offices, the Election Commission hires out other people's premises like schools or ITPO's Stalls for carrying out these official activities. These are different from a ceremony organised, e.g. celebration of the Silver Jubilee of the Election Commission of India or Honouring the Commission's functionaries or other persons connected with it. Similarly, a business organisation in manufacturing or marketing carries out its normal business of manufacturing, buying and selling in the routine manner from its assigned premises or its direct selling. On occasion, it may hire out an additional premise for carrying out its business activities of buying, selling etc. A trade fair is such an occasion. A trade fair brings together large numbers of connected parties at a fixed place during a short time so that buyer, seller and other contacts are facilitated. The participants in such a trade fair get together at the fair premises and carry out their normal business activities during the assigned period from the new premises; nevertheless, the activity taking place is the normal business activit....