ST - Appellant providing rooms to service receiver who booked Conference Hall - details about number of rooms provided, whether on complimentary basis is not forthcoming - addition of room rent in value of service provided as Mandap Keeper is proper: CESTAT
By TIOL News Service
MUMBAI, JULY 07, 2014 : THE appellants are running hotel alongwith Banquet Hall and Conference Hall for social functions. When Banquets Hall or Conference Hall is booked, the appellants are also providing rooms.
By taking into consideration the room rent for arriving at the assessable value as provider of Mandap Keeper service, the lower authority confirmed the demand and which was upheld by the Commissioner(A).
Against this order, the appellant is before the CESTAT and submits that the charges which are in respect of renting rooms are not includible for arriving at the assessable value as provider of Mandap Keeper service. They rely on the decisions in the case of Merwara Estates 2009-TIOL-871-CESTAT-DEL and Rambagh Palace Hotels Pvt. Ltd. 2012-TIOL-673-CESTAT-DEL. The appellants also rely on the earlier adjudication order passed by the Dy. Commissioner wherein he had taken into consideration 80% of the total charges towards room rent. In as much as since the earlier order was not challenged by the Revenue, 80% of the amount is to be considered towards room rent, submitted the appellant.
The Revenue representative submitted that the appellants are giving Banquet Hall and Conference Hall for organizing functions and receiving a lumpsum amount and had not produced any evidence regarding quantum of room rent by way of producing bills etc. and, therefore, the demand is sustainable.
The Bench observed that in the case laws relied, the assessees had recovered certain amounts in respect of renting of rooms but in the present case there was no such evidence produced by the appellant. Further, as to how many rooms the service receiver had taken on rent while booking the Conference/Banquet Hall is also not on record and whether the rooms were given complimentary or the appellants were charging separately for the rooms was also not forthcoming.
The CESTAT further observed that in the matter of the earlier order passed by the Deputy Commissioner whereby 80% of the total amount had been considered towards room rent the appellant had produced evidence by way of a Chartered Accountant certificate but nothing of this kind was submitted in the present matter.
Holding that in these circumstances, there is no merit in the appeals, the same were dismissed.
In passing : Also see 2014-TIOL-354-CESTAT-MUM.
(See 2014-TIOL-1210-CESTAT-MUM)