TaxTMI 
TaxTMI 
2019 (4) TMI 243
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....andap Keeper (ii) Club /Association (iii) Beauty treatment & health and fitness centre (iv) Dry Cleaning (v) Internet Café and (vi). Business Auxiliary Service 2.1. As regards the Service Tax under the category of Mandap Keeper, he submitted that they provided services to guests occupying the hotel rooms which were only short-term accommodation of hotel rooms involving a package to the guests. They were charged only for room accommodation and supply of food & beverages. As a complimentary use of conference hall was allowed and no charges were collected. Letting out hotel rooms, supply of food & beverages is not liable to Service Tax. He submitted that provision of 'short-term accommodation' came into Service Tax levy only on 01.05.2011 and was struck down by the Hon'ble High Courts of Delhi and Kerala as unconstitutional. The impugned order has seriously erred in demanding Service Tax on room tariff on which luxury tax was being levied by VAT Department. The appellants have discharged the Service Tax during April 2000 to March 2005 wherever they have rented out the conference hall per se as it was in the nature of Mandap Keeper Service. He submitted that demand which is a....
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....count. The value of therapeutic massage and hair cutting and/or hair dying needs to be excluded from the value and cum-duty benefit needs to be given. 2.4. Learned Counsel submitted that the demand under club or association is not sustainable as any services rendered by club or association to its members are not taxable. He relied upon the following cases: • Ranchi Club Ltd v. UOI, 2012 (26) STR 401 (Jhar.). • Sports Club of Gujarat Ltd v. UOI, 2013 (31) STR 645 (Guj.) • CCE v. Surat Tennis Club, 2016 (42) STR 821 (Guj.). • Green Environment Services Coop. Society Ltd. v. UOI, 2015 (37) STR 961 (Guj.). • CST v. DLF Golf Resorts Ltd, 2018 (12) GSTL 39 (Tri. Del.). • Bangalore Golf Club v. CST, Final Order No. 20082/2019 as reported in 2019-TIOL-321-CESTAT-BANG. 2.5. Regarding the dry clean service, he submitted that they had 3 wet cleaning machines and only 1 dry cleaning machine. The only 1 dry cleaning machine was used for the internal purpose of the Resort like cleaning the bed sheets, pillow covers, curtains of the rooms or uniforms of the service personnel. No guest clothes were dry cleaned. As ....
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....-therapeutic massages provided to the clients. Regarding internet café service, Learned Authorized Representative submitted that they have only mentioned that majority of the income was from STD & ISD calls. However, they did not produce any bills or ledger copies. • the appellants are paid 20% of the sales value by Himalaya Drug Company. This cannot be called renting out of premises. • members of the club are given various facilities like Spa, Swimming Pool, Health Club, Sport facilities etc. to the members of the Club on payment of fee. Therefore, it is not a fee for mere association. • though they have not provided dry cleaning facility to their customers, bifurcation and different accounts have not been given. Lastly, he submitted that the appellant had not declared all the categories of service provided by them and the taxable value thereof. Mere submission of Returns regularly is not enough for the Department to know the activities of the appellant. Therefore, extended period is invokable and penalties are imposable in view of the following cases: (i). CCE Aurangabad v. Padmashri V.V. Patil S.S.K. Limited, 2007 (215) ELT ....
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....ided Service Tax shall be paid. Similarly, it was contended by the Department that the appellants have not produced any documentary evidence that they were doing only hair cutting/dying during the period 01.08.2002 to 16.06.2005. Regarding the internet café, we find that the appellants claim that a small portion was for internet services and most of the receipts were for usage of ISD/STD telephone. We find that necessary bifurcation may be submitted to the authorities for computation of applicable duty. Similarly, the appellants may produce proof regarding their claim that they have not provided dry clean service to their customers. Wherever they have provided such services to the customers, the same shall be chargeable to Service Tax. For this reason, we find that the case needs to be remanded back to the original authority for appreciation of evidence given by the appellants and to compute the Service Tax liability. 5.3. We find that the appellant's arguments on the 'Business Auxiliary Service' rendered by them to M/s Himalaya Drug Company are only a renting of premises is not acceptable. It is not the appellant's case that they are receiving a fixed rent. They are gett....