Tvl. Mayajaal Entertainment Ltd Vs Commissioner of GST & Central Excise (CESTAT Chennai)
The CESTAT Chennai considered an appeal challenging an Order-in-Appeal dated 01.06.2017, which had upheld the Order-in-Original dated 09.03.2016 confirming service tax demand, interest, and penalty under Section 76 of the Finance Act, 1994. The dispute related to whether revenue received by the appellant from revenue-sharing arrangements with restaurants and retailers operating within its entertainment complex was taxable as Business Support Service (BSS).
The appellant, a registered service provider, rendered taxable services including Business Support Service, Renting of Immovable Property Service, Sale of Space or Time for Advertisement, and Membership of Club or Association Service. Following an investigation, the department alleged that the appellant had failed to pay appropriate service tax on income earned from various clients. A Statement of Demand for the period October 2011 to March 2012 sought service tax of Rs. 10,26,195 along with interest and proposed penalty under Section 76. The adjudicating authority concluded that the amounts represented “Revenue Share” received under Business Support Service arrangements with restaurants and retailers and confirmed the demand, interest, and penalty. The appellate authority rejected the appeal, leading to the present proceedings.
The appellant argued that the dispute was already covered by the Tribunal’s Final Order dated 20.06.2024 in its own case involving earlier periods. It submitted that the present Statement of Demand was based on the same facts and circumstances as the earlier show cause notices, which had already been decided in its favour.
