AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2023 (5) TMI 197
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....r Service'. 2. Briefly stated the facts of the present case are that the Respondent are engaged in the business of running and operating luxury hotel and was duly registered with jurisdictional service tax authorities under various categories inter alia 'Mandap Keeper Service' specified under Section 65 of the Finance Act, 1994. • During the course of Audit of the Respondent by the Headquarter Audit, Central Excise, Chandigarh and scrutiny of their records, it was observed that they are engaged in providing the taxable service of 'Mandap keeper Service' to various concerns like Lupin Laboratories, ABN Amro Bank, NFL, SBI etc. who stayed in the hotel for holding business conferences. The services provided to the clients inclu....
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....ion to their clients through room renting alongwith the providing of food facility through restaurants or through room service and such activities of hotels and restaurants do not fall with the ambit of "Mandap" falling under Section 65(105)(m). • The Ld. DR took us through the definition of taxable service on 'Mandap Keeper Service' prior to 16.05.2008. He also referred to the communication between the respondent and their corporate client, namely, Allahabad Bank to show that in the confirmation letter issued by the respondent, it is evident that the organising of conferences/meetings by the clients were pre planned and the rooms were booked only to hold the official functions in the form of conferences/meetings. The officials....
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..... She further stated that the breakup of the corporate billing as provided by the Respondent on record clearly proves that no separate consideration was charged for provision of conference facilities. • She further submitted that vide Circular No. 332/82/97-TRU dated 24 September 1997, it was clarified that in case of 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. She also referred to the Circular No. 62/11/2003-ST dated 21 August 2003 vide which it was clarified that as per charging section viz. Section 66 of the Act, service tax was chargeable at the rate of 8% of the value of taxable services and if the value is zero, the tax will....
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....in hotel becomes taxable with effect from 01.05.2011. • She further submits that the findings in the case of Rajmohan hotel vs. CCE 2006 (4) STR 370 (Tri.-Del.) relied upon by the appellant is not applicable in the instant case as the same is based on different facts. In the said case, the appellant was maintaining a separate book for the purpose of booking hall for marriage and other social function and the hall was rented out where marriages were solemnized for consideration whereas in the instant case, there was no separate consideration charged from the corporates for the provision of conference halls and no separate entry was recorded by the Respondent in its books which is evident from the breakup of the corporate billing....
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.... clear that no separate consideration was received for provision of conference facilities. 7. Further, through Circular No. 332/82/97-TRU dated 24 September 1997 it was clarified that in case of 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 the premises are given free of cost. This issue has been considered by various benches of the Tribunal as relied upon by the appellant cited (supra). In the case of Dukes Retreat Ltd. (supra), the division bench of this Tribunal in identical facts held that the assessee is not liable to pay service tax on complementary services of conference hall. In Para 6, the Tribunal has observed as under:- ....