2020 (9) TMI 833 - AT - Service Tax

Non-payment of service tax - museum fee/admission charges and camera ticket - appellant is a public charitable trust with the object of setting up a world class museum for the benefit of public, at large - exempt service or not - CBEC Notification No. 9/2017-ST dated 28.02.2017 - HELD THAT - In view of the Notification No. 9/2017-ST, extending the benefit of exemption on services by way of admission fee to museum etc., with effect from 01.07.2012, the demand vide the impugned order against the appellant, does not survive. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Service tax liability on museum fees and charges collected by a Museum Trust from visitors.

Analysis:
The Appellate Tribunal CESTAT New Delhi considered the case of a Museum Trust that collected various charges from visitors, including museum entry fees, camera tickets, audio tour charges, guide fees, elevator fees, and parking charges. The issue arose when a show cause notice was issued demanding service tax on the gross receipts of the trust. While the trust had already paid service tax on certain charges, it disputed the liability on museum fees and camera tickets. The Service Tax Commissioner upheld the demand, imposing penalties under Sections 78 and 77(2) of the Finance Act. The Commissioner noted that the museum entry fees did not fall under the Negative List of the Mega Exemption Notification at that time.

During the appeal, the trust highlighted Notification No. 9/2017-ST issued by the Government, which exempted service tax on admission to museums during the period from July 2012 to March 2015. The trust argued that the exemption was available even before July 2012 and was clarified through subsequent notifications. The Tribunal acknowledged the exemption provided in the notification, thereby overturning the demand raised against the trust. The Tribunal set aside the impugned order and allowed the appeal, entitling the trust to consequential benefits as per the law.

In conclusion, the Tribunal's decision was based on the retrospective exemption granted by Notification No. 9/2017-ST, which relieved the Museum Trust from the service tax liability on museum fees and charges collected from visitors. The trust successfully argued that the exemption applied from July 2012, resolving the dispute in its favor.