TaxTMI 
TaxTMI 
2007 (10) TMI 208
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....nt Department they cannot be brought under the category of Mandap Keepers. Theirs was a non-commercial auditorium and was let-out for nominal charges for cultural activities only. However, the Commissioner (A) noted that there is no exemption granted to the appellants and the activity of letting-out the auditorium for various social events is covered under the category of Mandap Keepers. 2. The appellants have not responded to today's notice of hearing, despite several adjournments given to them. The matter was also dismissed for non-compliance and latter restored on an application filed by them. The appellants have not appeared for almost 1½ years and the matter has been adjourned time and again. The appellants were given as last chance ....
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....ilm Shooting As regards the second appellant, the Kalamandir is hired out for cultural programmes like dance, drama and promotion of Kannada language. The learned Advocate vehemently argued that there is a distinction between 'cultural event' and 'social function'. According to him, in social functions, there is a meeting of known people. He has given the examples of marriage, house warming ceremony, kitty party, birthday party, etc. He has also referred to the Explanation inserted in the Finance Act. The Explanation reads as follows "Explanation.- For the purpose 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 ....
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....se for which the mandap is given on rent. In such circumstances, each case has to be examined on the basis of the facts at hand and it may not be correct to generalize. We have already enumerated in the present appeals, the purposes for which the Town Hall/Kalamandir are given on rent. The learned Advocate makes a fine distinction between 'cultural event' and 'social function'. According to him, organizing a dance or drama cannot be called as organizing 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, relying on the Board's clarification of 1997, we held that programmes of dance, drama and music are social functions. According t....
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....ing to Dance, Drama and Music? Clarification :The answer lies in the affirmative. The contention that holding a dance, drama or music programme it is not a special function is not tenable. Culture is an inalienable element of a civilised society and is an integral part of our social ethos and is in fact a form of social intercourse. Programmes of dance, drama and music are social function. 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, ther....