9911796707
TMI Blog2018 (10) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... obtained Service Tax Registration has not made true and full discloser of the taxable service been provided by them in their ST-3 returns filed from time to time and also that the full and correct value received from Mandap Keeper Service has been suppressed in violation of Section 67 of the Finance Act, 1994 while determining their service tax liability. 2. Brief facts of the case are that the respondents-assessee are running the business of Hotel, Banquet Halls and Restaurant from the single premises. There are various banquet halls of different sizes which the appellant-assessee allows for different functions like marriages, conferences, etc. The halls/rooms etc., let out by the hotel/restaurants is for a consideration for organizing s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 14.11.2011 has held that the contentions of the appellant-assessee on one hand is that they claim to have rented banquet hall to customers for holding conferences and other functions whereas on the other hand they do not charge any rent for booking of banquet hall for arranging lunch/dinner to the best of the customers which clearly reflects that the booking of banquet hall on buffet menu basically consists of elements of renting and catering activity and it is not disputed that the amount of renting of banquet hall and catering stood amortised in buffet menu, therefore, the supply of food/beverages in the banquet halls are not sale of food/beverages where other services were predominant. Predominance of these activities in buffet menu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he present appeal to the extent that the learned Commissioner has dropped the demand for invoking the extended period of limitation and the assessee has also preferred appeal before this Tribunal against the above mentioned order on the ground that service tax demand was confirmed under the category of Mandap Keeper Services for the period April, 2009 to March, 2010 and the penalty imposed under Section 76 of the Finance Act. 6. The learned counsel for the appellant-assessee has submitted that the sale of food/beverages by the appellant-assessee is just a sale simplicitor to their customers (hosts). The transaction in question is not a composite transaction involving both sale and service the appellant-assessee is raising invoices for sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ament. As such the interpretation given in the impugned order by following Sayaji Hotels (supra) is bad in law. 7. The counsel for the appellant-assessee further argued that the appellant-assessee was maintaining separate account and raising invoices for sale of food and beverages in the banquet halls thus, the Notification No.12/2003-ST is more specifically applicable than Notification No.01/2006-ST. The learned counsel also argued that the demand raised by the Revenue is time barred as an internal audit was conducted by the Department and in the verification report after perusing the documents no objection was raised to this effect for the same period and each and every document was examined and the audit party has recorded that nothing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance Act is concerned, it is applicable in cases other than those cover under Section 78 of the Act. Section 80 of the Act provides that no penalty shall be imposed on the assessee for any failure referred in Section 76 or 78 of the Act, if the assessee proves that there was reasonable cause for the said failure. The act itself statutorily provides for waiver of penalty, since in the present case, there was a bona fide believe on the part of the appellant that their activities are not subject to service tax, based on the detail reasoning given above, therefore, there was a reasonable cause for failure if any on the part of the respondent assessee to pay service tax although they filed ST-3 returns. The issue involved in the present appeal i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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