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TMI Blog2013 (6) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... atering Services' rendered in an aeroplane and the other decision of the Tribunal in the case of Daspalla Hotels Ltd [2009 (7) TMI 551 - CESTAT, BANGALORE] it is in respect of evidence relied upon by the appellant with regard to VAT paid on the value of food and beverages sought to be taxed under ‘Convention Services'. Appellant has not made out a case for 100% waiver of pre-deposit of the dues adjudged against him. - demand for the normal period of limitation directed to be deposited - stay granted partly. - ST/Stay-624/2012 ST/168/2012 - S/235/13/CSTB/C-I - Dated:- 18-2-2013 - P R Chandrasekharan And Anil Choudhary, JJ. For the Appellant : Mr. Ashok Chandak, C.A. For the Respondent : Mr. V K Agarwal, Nagpur. Addl. Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs.1,76,197/- in the first show cause notice. All these demands were confirmed along with interest thereon and also by imposing penalties under Sections 76, 77 and 78 of the Finance Act, 1994, in the case of the first show cause notice and in respect of the second show cause notice under Sections 76 and 77. Hence the appellant is before us. 3. The learned consultant for the appellant submits that they charge for the catering done separately by way of food charges on which they are discharging VAT liability and sale of food is not rendering of any service and, therefore, the said activity does not attract service tax liability. He relies on the decision of this Tribunal in the case of Daspalla Hotels Ltd. vs. Commissioner of Central Exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per services catering service is incidental and ancillary to the Mandap Keeper services and, therefore, the charges for catering services would be includable in the taxable value of Mandap Keeper Services subject to the grant of abatement prescribed in this regard. With regard to the contention of time-bar raised by the consultant for the appellant, he submits that the show cause notice dated 22/07/2011 is for the normal period only and with respect to show cause notice dated 15/11/2010, the demand for October 2009 to March, 2010 would fall within the normal period. Assuming without admitting that the demand for the extended period of time is not sustainable, he pleads that the appellant be put to terms with respect to the service tax deman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therein let out for consideration for organising any official, social or business function. A mandap-keeper apart from proper maintenance of the mandap, also provides the necessary paraphernalia for holding such functions, apart from providing the conditions and ambience which are required by the customer such as providing the lighting arrangements, furniture and fixtures, floor coverings etc. The services provided by him cover method and manner of the decorating and organising the mandap. The mandap-keeper provides the customer with advice as to what should be the quantum and quality of the services required keeping in view of the requirement of the customer. The nature of the event to be solemnized etc. In fact the logistics of setting u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e considered as a case of sale of food and drink as in restaurant. Though the Service Tax is leviable on the gross amount charged by the mandap-keeper for services in relation to the use of a mandap and also on the charges for catering the Government has decided to charge the same only on 60% of the gross amount charged by the mandap-keeper to the customer. 56. . 57. A tax on services rendered by mandap-keepers and outdoor caterers is in pith and substance, a tax on services and not a tax on sale of goods or on hire purchase activities. Section 65 clause 41 sub clause (p) of the Finances Act, 1994, defines the taxable service (which is the subject matter of levy of service tax) as any service provided to a custom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tters enumerated in List II (State List). In respect of matters enumerated in List III (Concurrent List) both Parliament and State Government have powers to make laws. The service tax is made by Parliament under the above residuary powers. 6.3 From the above decision of the hon'ble apex Court, it is clear that the services rendered by the mandap keepers as caterer would also be liable to service tax under the category of Mandap Keeper Services'. The decision relied upon by the consultant on the hon'ble High Court of Karnataka is with reference to Outdoor Catering Services' rendered in an aeroplane and the other decision of the Tribunal in the case of Daspalla Hotels Ltd it is in respect of evidence relied upon by the appellant with reg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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