VICAR HOLY FAMILY CHURCH Vs. UNION OF INDIA

JUDGEMENT

(1.) These three petitions raise the same questions of law, and, therefore, they can be conveniently disposed of by a common judgment.

(2.) The core issue in these three petitions is the challenge to the notice issued by the Revenue calling upon the petitioners to comply with the provisions as to registration under the Service Tax Rules, 1994 and to pay the service tax contemplated thereunder for rendering the taxable service of mandap keeper as defined in S.65(20) of the Finance Act, 1994.

(3.) In O.P. No. 6815 of 1998, petitioners are three churches in the Kottayam District registered as Charitable Trusts under the Income Tax Act and also registered under the Charitable and Religious Trust Act. These churches have attached parish halls in which it is claimed that several religious and spiritual functions like Catechism classes, Palliyogam, Bible Classes, Retreat, Prayer meetings, Religious seminars, etc. are carried on. It is the case of the petitioners that no social, official or business functions are conducted in the parish halls and that the parish halls are not let out to any one for consideration. It is stated that these parish halls are established and administered by Roman Catholics, a Christian religious denomination of the minority community, with the contributions of the parishoners and the voluntary donations made by the parishoners. Petitioners, therefore, contend that the parish hall is neither a mandap as defined in S.65(19) of the Finance Act, 1994 as amended by the subsequent Finance Act, 1997 and Finance Act, 2001, nor are the petitioners carrying out any taxable service within the meaning of S.65(20) of the Finance Act, 1994 as amended by the subsequent Finance Acts.