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TMI Blog2023 (4) TMI 1194X X X X Extracts X X X X X X X X Extracts X X X X ..... relation to the use of mandap in any manner would be taxable under section 65(105)(m) of the Finance Act. A Circular dated 23.08.2007 issued by the Central Board of Excise and Customs clarifies that halls or rooms let out by hotels/restaurant for a consideration for organizing any official, social or business function would be covered under the definition of mandap and such hotels and restaurant would be covered within the scope of mandap keeper. Accordingly, service tax would be leviable on services provided by hotels and restaurant in relation to letting out of halls or rooms for organizing any official, social or business function. The defence taken by the appellant that it was operating hotels/ restaurant and serving food on per plate basis was not accepted by the Commissioner in view of the categorical statement of the manager (operations) and the director of the appellant, as also the records resumed by the investigating officers under the panchnama dated 24.12.2011 containing bills relating to mandap keeper service. The contention of the appellant that the documents which formed the basis of the order passed by the Commissioner were not relied upon by the department ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the appellant and the relevant portions of the show cause notice are reproduced below: 3. Upon scrutiny of the records viz. daily receipt and expenditure sheet, payment vouchers, etc., it is observed that the Noticee have commenced their business operation during the financial year 2008-2009 onward and they have received huge amount from various clients in Cash as well as by Cheque . The details of the amount realised by them from their clients during the period from 2008-2009 to 2010-2011 (Annexure-J1 to J4) are as under:- Year Value of Cash Sales (in Rs.) Amount of other income (in Rs.) Amount of gross Income [Col.2+Col.3+Col.4] (in Rs.) Cash Cheque 1 2 3 4 5 2008-09 6,81,710/- 15,44,988/- 1,27,663/- 23,54,361/- 2009-10 84,47,940/- 2,52,33,690/- 19,44,106/- 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t furnish any details or documents as to on what account, such other income was received by them. Their activity was limited to Restaurant business and Bakery business and letting out of halls, rooms, etc., of the Restaurants as stated by Shri Satish Kumar Pachaori, Manager and Shri. Ashwin Sethi, Director in their Statement dated: 24-12-2011 and 03-04-2012 respectively. Since, they have already recorded their income from the Restaurant business and Bakery business and have declared the same to the Commercial Tax Department, the remaining income amounting to Rs.8,32,03,871/- was on account of letting out of halls, rooms, etc., for consideration for organising social, official or business functions. Thus, it is evident that such income pertains to the amount collected/received from their clients on account of letting out the halls, rooms, etc., for a consideration for organising social, official or business functions during the years 2008-2009, 2009-2010, 2010-2011 and 2011-2012 in relation to Mandap keepers Services rendered by them. 7.3. Scrutiny of all the documents revealed that the Noticee has received Rs.8,32,03,871/- from their clients, for the taxable services viz. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i Ashwin Sethi, Director under Section 14 of the Central Excise Act, 1944 (Annexure-F) ; (vii) Letter dated 29.03.2012 of the Superintendent, Range-Service Tax, Civil Lines, Raipur (Annexure-G) ; (viii) Letter dated 18.04.2012 of the Commercial Tax Officer, Circle-7, Raipur (Annexure-H) ; (ix) Daily receipt and expenditure sheet for the year 2008-09 to 2011-12 (Annexure-J1 to J4) ; (All the above mentioned documents available with the Noticee) 6. The appellant filed a reply to the show cause notice and stated that it did not book any space for organizing parties. In fact, the appellant only booked tables for the clients/customers for providing restaurant service, irrespective of whether the clients/customers booked the tables for birthday or kitty party. The appellant also stated that it had not let out any room to guests. There were only two to three rooms inside the premises which were used by the staff and these rooms may have been given to some guests for the purpose of keeping specific foodstuff which the customers may be bringing with them to serve at the time of dinner. 7. The Commissioner, by order dated January 20, 2015, confirmed the demand with inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese were arranged by him by engaging outside agencies. Again in answer to question No.10 asking him to explain recorded payments totaling to Rs.4,77,500/-towards B.K.B. Tent, Generator Light Decoration, Flower etc., he stated that these were collected by him from parties and paid to outside agencies . (c) Records resumed from the Notice by the investigating officers under panchnama dated 24-12-2011 and shown in Annexure A contains the following description; (i) Bills relating to mandap keeper service pages 1-439 (ii) Bills relating to mandap keeper service pages 1-157 (iii)Bills relating to mandap keeper service pages 1-245 Thus the aforesaid evidence clearly point to the fact that the Notice had been engaged in rendering service under the category of mandap keeper . 40.1 Therefore, in the backdrop of the aforesaid facts and recorded statements, Notice's records resumed under panchnama, now while replying to the Show Cause Notice, the Notice's negation regarding rendition of mandap keeper service is not tenable and legally also not acceptable. xxx xxx xxx 40.2.3. xxxxxxxx The plea of the Notice in their defence that whatever documents are made basis for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, light fittings and floor covering therein let out for a consideration for organising any official, social or business function: Explanation .- For the purposes of this clause, social function includes marriage; 13. Section 65 (67) of the Finance Act defines the mandap keeper as follows: Section 65 (67): mandap keeper means a person who allows temporary occupation of a mandap for a consideration for organising any official, social or business function; Explanation .- For the purposes of this clause, social function includes marriage; 14. Section 65 (105) (m) of the Finance Act makes mandap keeper service taxable and it is as follows: Section 65 (105) (m): taxable service means any service provided or to be provided - (m) : to any person, by a mandap keeper in realtion to the use of mandap in any manner including the facilities provided or to be provided to such person in relation to such use and also the services, if any, provided or to be provided as a caterer. 15. A mandap keeper is, therefore, a person who allows temporary occupation of a mandap for a consideration for organizing any official, social or business function. Man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and expenditure sheets. 20. The defence taken by the appellant that it was operating hotels/ restaurant and serving food on per plate basis was not accepted by the Commissioner in view of the categorical statement of the manager (operations) and the director of the appellant, as also the records resumed by the investigating officers under the panchnama dated 24.12.2011 containing bills relating to mandap keeper service. The contention of the appellant that the documents which formed the basis of the order passed by the Commissioner were not relied upon by the department cannot also be accepted for the reason that Annexure A to the panchnama clearly contains the description of the said documents. The finding recorded by the Commissioner in this regard, therefore, does not suffer for any infirmity. It was for the appellant to explain the details of the entries made in the daily receipt and expenditure sheet and a general and casual statement made by the appellant that some of the entries relating to family members were also included without providing specific details could not have come to the aid of the appellant. 21. It is clearly a case where the appellant had suppressed m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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