2017 (1) TMI 1548 - AT - Service Tax

Convention Service - Revenue s case is that while providing the Convention Service during the period 1.10.2007 to 30.09.2008, the appellant had not paid service tax on the value realized for providing food and room to the participants, where the said services were provided as a package and were charging from the customers for providing convention services - Held that - Since the period involved in this case is from 1.10.2007 to 30.09.2008 and for the earlier period, the Tribunal in the case of CCE, Jaipur Versus Chokhi-Dhani Resorts Pvt. Ltd. 2017 (1) TMI 38 - CESTAT NEW DELHI has upheld the order passed by the ld. Commissioner (Appeals), the order of the Tribunal in the above case can be adopted in this case for allowing the appeal in favor of the appellant - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Service tax liability on convention services provided as a package including food and room charges.

Analysis:
The case involved a dispute regarding the payment of service tax on convention services provided by the appellant, which fell under the category of "Convention Service" as defined under Section 105(zc) of the Finance Act, 1994. The Revenue contended that the appellant had not paid service tax on the value realized for providing food and room to the participants as part of the convention services package. The Commissioner of Central Excise (Appeals) had previously allowed the appeal for the periods Jan. 2004 to March 2006 and April 2006 to September 2007. The Tribunal, in a previous order dated 23.12.2016, had upheld the Commissioner's decision for the earlier period. In the current case, covering the period from 1.10.2007 to 30.09.2008, the Tribunal decided to adopt its previous order and allowed the appeal in favor of the appellant, setting aside the impugned order.

This judgment highlights the importance of consistency in decisions, as the Tribunal applied its earlier ruling to the current case based on similar facts and circumstances. It also underscores the significance of adherence to legal provisions and definitions, such as the classification of services under the Finance Act, in determining tax liabilities. The case demonstrates the process of appellate review and the Tribunal's authority to overturn decisions based on the interpretation of relevant laws and precedents. The involvement of legal representatives for both parties indicates the adversarial nature of the proceedings, with arguments presented and considered before reaching a final decision. Overall, the judgment provides clarity on the tax treatment of bundled services like convention packages and the application of past decisions to current cases for consistency and fairness in tax assessments.