Monday, December 16, 2013

ST - Hotel accommodation and Mandap Keeper are distinct services

Hotel accommodation and Mandap Keeper are distinct services

Rambagh Palace Hotels Pvt. Ltd. vs. CCE, Jaipur - 2013(31)STR 480 (Tri.-Del.)

The Appellants provided mandap keeper's services and convention services and discharged service tax on banquet charges, banquet sundries and banquet food. The Appellants, however, did not discharge service tax on the value of room charges booked by them for the purpose of marriage, conference, meetings etc. The department contended to include such room charges in the value of mandap keeper services.

Held:
The Hon. Tribunal held that renting of hotel rooms cannot be held to be covered under the definition of mandap keeper services especially whenthe hotel has an identity, responsibility and function distinguishable from the mandap. The Tribunal further observed that the activity of givinghotel rooms on rent to customers, who might organize functions in the hotel, was different from that of the activity of a mandap keeper and thatthe definition of mandap keeper did not cover temporary accommodation of hotel rooms or boarding or temporary residence. Further, thefunctions were also not held in hotel rooms which were used for stay.

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