Case Law Details
Saubhagya Tilak Hotels Pvt Ltd Vs Commissioner of Central Excise Raipur (C.G.) (CESTAT Delhi)
CESTAT Delhi held that service tax is leviable on services provided by hotels and restaurant in relation to letting out of halls or rooms for organizing any official, social or business function under ‘mandap keeper’ service.
Facts- The appellant claims that it is engaged in the business of running restaurants and supply of bakery and confectionery items. The Department, however received information that the appellant was providing services falling under “mandap keeper”. The officers visited the premises of the appellant and a panchnama dated December 24, 2011 was drawn in the presence of Satish Kumar Pachori, Manager and two independent witnesses. The statement of Satish Kumar Pachori was also recorded on December 22, 2011. He stated that appellant provides services in relation to birthday parties, kitty parties and marriage parties and has the ability to arrange parties for a group comprising between 700 to 800 people and for this purpose an advance of Rs.10000/- to Rs.25000/- is taken. He also stated that the frequency of such bookings is 8 to 10 per month.
A show cause notice was, thereafter, issued calling upon the appellant to show cause as to why service tax on “mandap keeper” service provided by the appellant during 2008-2009 to 2011-2012 should not be recovered with interest and penalty.
Commissioner confirmed the demand with interest and penalty.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
