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TMI Blog2004 (11) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... ideep caterers in consideration give the donations to the Respondents. The Saideep caterers had paid Rs. 8,35,000/- to the Respondents as donations. The Department regarded this payment as the payment relatable to the service as Mandap keeper chargeable to Service Tax. The Respondents had paid the differential Service Tax on the said amount received by them from Saideep Caterers and subsequently filed refund claim. The Assistant Commissioner, under Order-in-Original No. 59/2002 dated 22-7-2003, rejected the refund claim filed by the Respondents on the ground that the hirer of Mandap is bound to avail the services of Saideep Caterers and that the donation has a correlation with the frequency of occupation of the hall and as such the said amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation which is relatable to the service as Mandap Keeper and is liable to service tax. He relied upon the decision in the case of Tamil Nadu Kalyana Mandapam Association v. UOI, 2004 (167) E.L.T. 3 (S.C.) wherein the Supreme Court has held that the Taxable Services "would also include other facilities supplied in relation thereto." 4.On the other hand, Shri S.S. Phadker, learned Advocate, for the Respondents, submitted that they only provide Mandap service to their clients; that M/s. Saideep Caterers enters into agreements with the hirer for provision of catering and decorating services which the Respondents are not party to; that what services are to be rendered by the service provider (Shri Saideep Caterers) to the client is not their co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endered as a caterer and not as a decorator and the service said to be provided as "decorator" cannot be subjected to levy of Service Tax. 5.1We have considered the submissions of both the sides. Taxable service with regard to a Mandap Keeper means, as per Section 65(90)(m) of the Finance Act, 1994, any service provided, - "To a client, by a mandap keeper in relation to the use of mandap in any manner including the facilities provided to the client in relation to such use and also the services, if any, rendered as a caterer." 5.2It is not in dispute that the Respondents are mandap keeper as they allow temporary occupation of a mandap for a consideration for organizing any official, social or business function. The only issue to be decide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apparent that the Respondents have entered into two exclusive agreements with Shri Saideep Caterers & Decorators for providing the services of catering and decoration to the persons who hire their community hall for social, cultural or religious functions as they are unable to render these services to their hirers. Further, the hirer is bound to avail of these services, if these services are required by them, from Shri Saideep Caterers & Decorators only who have agreed to way contribution to corpus of the Respondents. As such the Respondents are providing the facilities of catering and decoration to their client in relation to use of mandap. The service charges are received by them through Shri Saideep Caterers and Decorators as contributio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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