TaxTMI 
TaxTMI 
2019 (1) TMI 183
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.... 'Convention Services' for the period from 1.4.2002 to 31.8.2006 and also confirmed the demand of interest under Section 75 of the Finance Act and also imposed penalties under Section 76, 77 and 78. 2. Briefly the facts of the present case are that the appellant is a unit of Chamundeswari Build Tech Pvt. Ltd. and is registered under service tax under the category of 'Club and Association Service'. The appellant is running a conventional golf resort and have star hotel facilities including business centre, swimming pool, gold resort, banquette facilities bakers shop, golf training academy, driving range, badminton court, tennis court, squash court, billiards facility, card game facility, horse and camel riding, health club, spa, indoor ga....
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....Tax confirmed all the proposals in the show-cause notice. 3. Heard both the parties and perused the records. 4. Learned counsel for the appellant submitted that the impugned order is not sustainable in law as the same is contrary to the facts, laws and evidence. He further submitted that the Commissioner has failed to appreciate that during the relevant period, there was no levy whatsoever on room tariff collected for food/beverages sold as a result of letting short term accommodation by hotels, inns, guest houses, clubs and camp sites by whatever name called. He also submitted that such activity came under the service tax net only after 1.5.2011 by virtue of Section 65(105)(zzzzw) inserted by the Finance Act, 2011. It is his further ....
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....eme Court decision in the case of CCE vs. Dhiren Chemicals: 2002 (139) ELT 3 (SC). He further submitted that during the relevant period hotels were totally kept out of renting of immovable property service by Section 65(105)(zzzz) vide Explanation 1(d) thereto which excluded building used for the purposes of accommodation including hotels, hostels, boarding houses, holiday accommodation, tents and camping facilities. He further submitted that the activities of the appellant fall within the scope of State Legislation and were assessed as such as the state taxes and that being so there was no question of levy of service tax on any of the activity of the appellant and the impugned order is contrary to the constitutional mandate and the scheme ....
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....g the course of investigation. Further, we find that appellants have produced the bills which have been issued to various customers during the impugned period and we find that appellants have not charged any tariff for conference halls and they have only charged for renting of the rooms. Further, we find that the hotels are totally kept out of renting of immovable property service by Section 65(105)(zzzzw) vide Explanation 1(d) which excluded building used for the purpose of accommodation including hotels/hostels, etc. Further, we also note that the Hon'ble High Court of Delhi and Kerala in various decisions cited supra have held that levy was covered by Entry 62 of List II of VII Schedule of the Statute relating to luxury tax which the app....
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....hich is not part of convention service. We have no hesitation in approving the view taken by the Commissioner (Appeals). 4. Next we turn to the question whether the value of meals and beverages supplied to the participants of the conference is to be included in the value of the conventional services. It is on record that such charges along with the room rent have been indicated separately in the bills. It is also on record that the respondent has been paying VAT to the State Government on sale of food and beverages to the customers as indicated in the bills raised by them. It is a settled position of law that two taxes, i.e., VAT and Service Tax cannot be levied on the same value. In the impugned order, the Commissioner (Appeals) has rec....
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....as follows :- "82. For the same reason the Centre cannot include the value of the SIM cards, if they are found ultimately to be goods, in the cost of the service. As was held by us in Gujarat Ambuja Cements Ltd. v. Union of India - (2005) 4 SCC 214, 228." "This mutual exclusivity which has been reflected in Article 246(1) means that taxing entries must be construed so as to maintain exclusivity. Although generally speaking, liberal interpretation must be given to taxing entries, this would not bring within its purview a tax on subject matter which a fair reading of the entry does not cover. If in substance, the statute is not referable to a field given to the State, the Court will not by any principle of interpretation all....