Charitable Trust letting out stalls adjoining temple for selling toys, garlands, flowers, food etc. during Navratri festival not liable to pay ST as "Mandap Keeper"
SERVICE tax demands were confirmed on the ground that the appellants had provided service of ‘mandap keeper'.
Before the CESTAT, it is submitted that the appellants are a Charitable Trust registered under the Income Tax Act and engaged in the activity of managing the affairs of a temple; that during Navratri days, the devotees came to the temple and during this period, some stalls were let out (by calling for tenders) to different persons for the business of selling toys, garlands, flowers, food etc. in the open place adjoining the temple; and this activity does not fall under "mandap keeper" service.
The Revenue representative submitted that as the appellants are arranging a social function in the form of Navratri festival the demands are rightly made.
The Bench observed -
"5. We find that the demands are confirmed under the "mandap keeper service". As per the provisions of Sections 65(67) and 65(105) of the Finance Act, ‘mandap keeper' means a person who allows temporary occupation of a mandap for a consideration for organizing any official, social or business function.
6. In the present case, even in reply to show cause notice, the appellants stated the facts that certain stalls are allotted to different persons for selling different items such as toys, garlands, flowers, food etc. and produced evidence in support of this claim. In view of this, we find merit in the contention of the appellants that the appellants are not covered under the scope of "mandap keeper service". The impugned orders are set aside and the appeals are allowed."
Revenue doesn't leave anything to chance. But certainly, this order needs wide publicity as the Navratri festival is round the corner!