Case Law Details
CA Urvashi Porwal
Brief of the Case
In the case of M/s. Narmada Jackson Hotel Vs. C.C.E., Bhopal, it was held that in case of mandap keeper service, the catering charges (cost of buffet dinners) was not entirely excludable from the assessable value and therefore the appellant was eligible only for the benefit of abatement of 40% as per Notification No.12/2001-ST, dated 20.12.2001.
Facts of the Case
The appellant was issued a Show Cause Notice dated 18.09.2006 demanding service tax of Rs.2,94,502/- under “Mandap Keeper” service. The primary adjudicating authority dropped the demand on the ground that the appellant was entitled to the benefit of Notification No. 12/2003-ST, dated 20.06.2003 and thereby catering charges were not included in the assessable value. The Commissioner reviewed the said order and after issue of notice to the appellant held that the catering charges (cost of buffet dinners) was not entirely excludable from the assessable value and therefore the appellant was eligible only for the benefit of abatement of 40% as per Notification No.12/2001-ST, dated 20.12.2001 as amended by notification No. 8/2004-ST dated 09.07.2004. Thus holding the commissioner passed the impugned order.
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Ms. Urvashi Porwal, Kindly suggest if the assessee has a Benquet Hall in which he is charging Hall Rent + Decoration Service + Catering Service. Whether 40% abatement will apply on all or else ?