Case Law Details
Smaaash Leisure Limited Vs Commissioner of Central Goods & Service Tax (CESTAT Delhi)
The case of Smaaash Leisure Limited vs. Commissioner of Central Goods & Service Tax (CESTAT Delhi) delves into the applicability of service tax on income generated from bowling alleys. The order, dated 31.01.2019, by the Commissioner, was challenged by Smaaash Leisure Limited, asserting that their income from bowling alleys should be exempt from service tax. The appeal argued that the charges for access to the bowling facility fell under the Negative List of services.
The dispute revolved around whether income derived from the bowling alley should be subject to service tax. Smaaash Leisure Limited contended that the charges collected for access to the bowling alley should be exempt under section 66D(j) of the Finance Act. However, the Commissioner’s order maintained that the facility did not qualify as an ‘amusement facility’ as defined under section 65B(9) of the Finance Act, thus making it taxable.
The appellant argued that since the charges were solely for access to the bowling alley and not for ‘playing bowling alley,’ they should be exempt. The order analyzed the definitions of ‘amusement facility’ and ‘access to’ and concluded that the charges for accessing the bowling alley were indeed covered under section 66D(j) of the Finance Act.
Additionally, the order addressed the contention regarding the invoca-tion of the extended period of limitation and the denial of cum-tax benefit. It ruled in favor of Smaaash Leisure Limited, stating that the demand for service tax was not sustainable, thus negating the need for penalties.
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