9911796707
TMI Blog2020 (3) TMI 753X X X X Extracts X X X X X X X X Extracts X X X X ..... t the event. The appellant entered into separate contract with the customer for providing the goods needed for the event and collected charges in the nature of rent. These charges are nothing but expenses for rendering event management service and should form part of taxable value for paying service. This is because without the use of such equipments / goods the appellants would not be able to conduct the event. The charges collected in the nature of rent from the customer can only be considered as expenses for providing the event management services. Merely because the appellant bifurcated the contract as Event Management Service and for hiring of goods, it cannot be concluded that the charges paid for use of the goods do not fall withi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equipments / goods used for providing Event Management Services. SCN was issued proposing to demand short paid service tax along with interest and also for imposing penalties. After due process of law, original authority confirmed the demand along with interest and imposed penalties. Aggrieved by such order, the appellant is now before the Tribunal. 2.1 On behalf of the appellant, Ld. counsel Shri V.S. Manoj appeared and argued the matter. His submissions as given in writing are summarized as under : 2.2 The Department alleged that the Appellant has not discharged service tax on the gross amount received. The differential value is proposed to tax under the category of Event Management Service together with interest and penalty. The A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluding that the Appellant suppressed the fact from the Department and therefore extended period of limitation is rightly invoked. This finding is without appreciating the fact that there is no liability unless the taxable service is specified in the statute. 2.5 The Appellant submitted documentary evidence to establish the fact that there were separate arrangements for conducting event and for supply of good required for the event. The Appellant also raised separate invoices for the supply of goods and on hire as well as for one time consumption. In the case of one time consumption the value is not liable to service tax even under the category of Supply of Tangible Goods Service as it tantamount to sale of goods. The adjudicating author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t management, the amount collected for providing the goods are nothing but expenses for providing the service of event management and has to be included in the taxable value for payment of service tax. She adverted to the annexure to the show cause and the statement of Shri Sunntosh recorded by the department. Appellant has not discharged service tax on the entire consideration received for providing Event Management Service by artificially bifurcating the contracts and therefore the demand confirmed is correct. 4. Heard both sides. 5. The issue in this appeal is the demand confirmed under Event Management Services. It is the case of department, that the appellant has not included the charges collected by them on the equipments / goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vent management service and should form part of taxable value for paying service. This is because without the use of such equipments / goods the appellants would not be able to conduct the event. If the appellant does not own / possess such goods appellant would have to take on hire such goods and then use for providing the service of event management. If that be so, the charges paid by appellant for hiring the goods / equipments would be nothing but expenses incurred for rendering event management service and such expenses would be includable in taxable value for paying service tax. The appellant used their own equipments to conduct the event. The charges collected in the nature of rent from the customer can only be considered as expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cargo space is not taxable. On perusal of the said final order, it reveals that there is understanding between the parties to engage the appellant in the two activities in the same contract. Further, it is now settled law that purchase and sale of cargo space is not a service. In the present case, for providing event management service, certain activities which fall into the area has been bifurcated into separate contracts so as to reduce the taxable value. We do not find any grounds to rely upon the final order stated supra, as it is not applicable to facts of this case. 8. From the foregoing discussions, we are of the considered view that the demand confirmed along with interest in the impugned order does not require any interference. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
