2006 (6) TMI 470 - AT - Service Tax

Summary

Issues:
Challenge to imposition of Service Tax on 'Mandap Keeper' for providing space for religious ceremonies like marriage.

Analysis:
The appellant contested the imposition of Service Tax on the grounds that they provided space for religious ceremonies, such as marriages, which should be exempt from taxation. They relied on a Tribunal decision and argued that the marriage being a religious ceremony should not be subject to Service Tax. However, the respondent, represented by the ld. SDR, contended that the appellant, a registered society, provided space for social functions for consideration, falling under the definition of 'Mandap Keeper' as per the Finance Act. The respondent argued that the Tribunal's decision cited by the appellant was not applicable to the present case, as it involved a religious place where marriages were conducted without consideration. The respondent also cited a Supreme Court decision regarding the liability of Service Tax on Kalyana Mandapams, upholding the taxability of such services.

The Tribunal found that the appellant, being a social organization registered under the M.P. Societies Registration Act, provided hall and rooms for consideration for organizing marriages, thus falling under the definition of 'Mandap Keeper' as per the Finance Act. Referring to the Supreme Court decision on the liability of Service Tax on Kalyana Mandapams, the Tribunal upheld the taxability of services provided by Mandap Keepers for organizing marriages. The Tribunal concluded that the appellant's reliance on the previous Tribunal decision was misplaced, as the circumstances were different, and the Supreme Court decision was more relevant in this case. Therefore, the Tribunal dismissed the appeal, citing no infirmity in the imposition of Service Tax on the appellant as a 'Mandap Keeper' providing space for marriage ceremonies.

This judgment clarifies the taxability of services provided by 'Mandap Keepers' for organizing marriages, emphasizing the applicability of Service Tax even in cases where the ceremonies are of a religious nature. The decision highlights the importance of considering the specific provisions of the Finance Act and relevant judicial precedents, such as Supreme Court judgments, in determining the tax liability of entities providing space for social functions like marriages.