2014 (3) TMI 904 - AT - Service Tax

Demand of service tax - Mandap Keeper and Convention Service - Held that - Considering the fact that, in appellant s own case, for the previous period, this Tribunal has granted unconditional waiver from pre-deposit of the service tax liability on room charges and also considering the decision of this tribunal in the case of Rambagh Palace Hotels Pvt. Ltd. (2013 (12) TMI 556 - CESTAT NEW DELHI), the appellant has made out a prima facie case for grant of stay. Accordingly, we grant waiver from pre-deposit of the adjudicated liability and stay recovery thereof during the pendency of the appeal - Stay granted.

Summary

Issues:
1. Service tax demand confirmation against the appellant for the period 2007-08 to 2011-12 under Mandap Keeper Service.
2. Applicability of service tax on room charges collected for renting out premises for conferences.
3. Prima facie case for grant of stay based on previous Tribunal decisions.

Analysis:
1. The judgment addresses the appeal and stay petition against the Order-in-Original confirming a service tax demand of Rs. 1,11,85,317/- on the appellant for the period 2007-08 to 2011-12 under Mandap Keeper Service, along with penalties and interest imposed by the Commissioner of Central Excise, Pune -I. The appellant challenges this order.

2. The appellant argues that the demand is related to room charges collected for renting premises for conferences, asserting that service tax on room charges only became applicable from 01/05/2011. Citing a previous Tribunal stay order in their favor and referring to a specific case law, the appellant contends that room charges for events like marriages and conferences do not fall under Mandap Keeper Service. Therefore, they request a stay based on these grounds.

3. The Revenue, represented by the Additional Commissioner, counters the appellant's argument by stating that renting out premises for conferences, including catering services, falls under Mandap Keeper Service, making the entire activity taxable. The Revenue opposes the appellant's plea for a stay.

4. After considering both parties' submissions, the Tribunal acknowledges the appellant's prima facie case for a stay. Referring to the previous Tribunal's unconditional waiver on service tax liability for room charges in the appellant's favor and relying on a specific case law, the Tribunal grants a waiver from pre-deposit of the adjudicated liability and stays the recovery during the appeal process.

This judgment highlights the interpretation of Mandap Keeper Service concerning room charges for events like conferences, emphasizing the applicability of service tax and the grounds for granting a stay based on previous Tribunal decisions and legal precedents.