2024 (10) TMI 1546

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....x contending inter alia that ➢ Our hotel operated under the name of "Vijay Park" is highly reputed and well equipped to meet the needs of diverse customer groups. Apart from our excellent accommodation, our catering services are much sought after as a variety of cuisines including Chinese, Continental, Italian etc. are available. While we operate .... restaurants under the names of ..... and a bar known as ....., it is commonly seen that large groups of families or friends or other such groups often wish to host largescale lunches, dinner, high tea or similar meals for large numbers as a buffet or table service with or without cocktails. In those cases, as the existing restaurants are not ideally suited, we offer the use of our banquet halls namely Nesam, Appadurai Nadar, Maharajan Nadar, Radha, Anitha, Ahila, Jayaraghavan Nadar, Jai, Madhu, Sukanya or Aparna depending on the number of guests expected. The use of such halls is completely subservient to the customer's main requirement of providing catering services to large groups which the restaurants cannot accommodate and the seating arrangements are therefore made according to the likes of the customer. ....

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....t out for a consideration for organizing any official, social or business function. S. 65(67) of the Finance Act, 1994 defines Mandap-keeper to mean a person who allows temporary occupation of a mandap for a consideration for organizing any official, social or business function. Taxable service u/s 65(105)(m) means any service provided or to be provided to any person, by a mandap keeper in a relation to the use of mandap in any manner including the facilities provided or to be provided to such person in relation to such use and also the services, provided or to be provided as a caterer. 7. Section 67 deals with valuation of taxable services for charging service tax as per which, the value of taxable services - in relation to service provided by Mandap keeper to a client, shall be the gross amount charged by such mandap-keeper from the client for the use of mandap, including the facilities provided to the client in relation to such use and also the charges for catering, if any. 8.1. We have carefully perused the invoices placed on record as well as the written submissions filed before us and before the ld. lower authority. It is clear that the appellant has n....

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....pers provide a wide variety of services apart from the service of allowing temporary occupation of mandap ..... The services provided by him cover method and manner of decorating and organizing the mandap.... In fact, the logistics of setting up, selection and maintenance is the responsibility of the mandap keeper .... The services provided by a mandap keeper are professional services which he alone by virtue of his experience has wherewithal to provide. ...." 12. In fact, wide range of services are included in the definition of taxable services as far as 'mandap-keeper' is concerned. The said definition includes services provided in relation to use of mandap in any manner and includes the facilities provided to the client in relation to such use and also services rendered as a caterer. In fact, making available a premises for a period of few hours for the specific purpose of being utilized as a mandap, whether with or without other services would itself be a service and cannot be classified as any other kind of legal concept. We have noted that under S. 65(66) of the Finance Act, 1994, Mandap means any immovable property as defined in section 3 of the Transfer of Property ac....

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....as exclusive powers to make laws with respect to any of the matters enumerated in List I in the Seventh Schedule to the Constitution. As per Article 246(3), the State Government has exclusive powers to make laws with respect to matters enumerated in List II (State List). In respect of matters enumerated in List III (Concurrent List) both Parliament and State Government have powers to make laws. The service tax is made by Parliament under the above residuary powers." [Emphasis added] 15. From the above, the contention of the appellant has also been answered against the taxpayer by the Hon'ble Supreme Court. 16. In view of the above, we are of the clear view that the Commissioner (Original Authority) was correct in confirming the demand under Mandap-Keeper Service on the appellant. 17. The disputed period for which the service tax has been confirmed is from April 2007 to January 2012; the appellant has contended that there is no suppression since it was under a bonafide belief that it remitted sales tax on the ground that there was only sale of food without involving any service. In the impugned order, the original authority has held that the liability to servic....