2005 (8) TMI 413 - AAR - Service Tax

Under which classification i.e. (a) to (zzy) of sub-section 105 of section 65 of Chapter V of the Finance Act 1994 are supply of furniture fixtures lights and light fittings. PA system and other articles without providing/supplying/erecting a pandal or shamiana are covered? Are pandals and shamianas supplied for Hindu marriages exempted from service tax as per the Notification F. No. B2/A/2000/TRU dated 10th September 2004? Is cartage charge for transportation of material from godown to different sites inclusive in the total bill for the purpose of charging service tax. Can its credit be availed under 96C(2)(e)?

Summary

Issues:
Classification of service for advance rulings under Section 65 of the Finance Act, 1994; Exemption of pandals and shamianas for Hindu marriages from service tax as per Notification F. No. B2/A/2000/TRU, dated 10th September, 2004.

Analysis:

Classification of Service:
The applicant sought advance rulings on the classification of services related to the supply of furniture, fixtures, lights, and other articles without providing a pandal or shamiana. The Authority examined the relevant clauses of Section 65 of the Finance Act, 1994. The key consideration was whether the applicant's services fell under Clause (zzw), which pertains to services provided by a pandal or shamiana contractor in relation to a pandal or shamiana. The definition of "pandal or shamiana contractor" includes individuals engaged in providing services in connection with the preparation, arrangement, or decoration of such structures. It was clarified that the applicant need not personally provide a pandal or shamiana to be classified as a contractor. The services provided by the applicant, directly or indirectly related to pandals or shamianas, would be taxable under Clause (zzw) of Section 65(105) of the Act. However, services like supplying a PA system not covered by the contractor definition would not fall under this classification.

Exemption of Pandals and Shamianas:
Regarding the exemption of pandals and shamianas for Hindu marriages from service tax as per a specific notification, the applicant referenced a communication from the Ministry of Finance. The Authority noted that this communication was not an exemption notification issued under the Act but rather an internal clarification for field officials. It was emphasized that the communication did not grant any exemptions under Section 93 of the Act. Consequently, the Authority held that no advance ruling could be provided on this question as it did not fall under the scope of Section 96C(2)(d) permitting queries on the applicability of notifications issued under Chapter V.

Conclusion:
The Authority ruled that the supply of furniture, fixtures, lights, and other items by the applicant would be classified as a taxable service under Clause (zzw) if connected to pandals or shamianas as defined by the Act. However, services like providing a PA system not falling under this definition would not be taxable under the same clause. Additionally, the question related to the exemption of pandals and shamianas for Hindu marriages did not qualify for an advance ruling due to the nature of the communication referenced by the applicant. The rulings were pronounced on August 23, 2005, by the Authority for Advance Rulings in New Delhi.