COMMISSIONER OF CENTRAL EXCISE, MANGALORE Vs. KRISHNAPUR MUTT

JUDGEMENT

(1.) WHETHER receipt of any consideration either by way of rent or in the form of Padakanika for organising any religious function is liable to charge under the Service Tax Act, 1944 (sic) [Finance Act, 1994], is an issue to be considered herein.

(2.) THE Department has demanded the Service Tax, charged interest and imposed penalty on the ground that the hall premises owned by the Krishnapur Mutt is a Mandap under Section 65(22) of the Service Tax Act, 1944 (sic) (Finance Act, 1994).

(3.) IT was the contention of the Party before the authorities below that the hall belongs to Krishnapur Mutt and the Mutt is not charging any rent for the functions held in the hall and is not coming under the terms of Mandap Keeper. The hall is used for religious purpose by the disciples of the Mutt and sometimes money is accepted as Padakanika. The hall is given to the followers of the Mutt to perform function in the hall strictly free of rent and no rent is collected from the use of the hall. Hence, the hall will not come under the provisions of Mandap Keeper as per Section 65(22) of Service Tax Act, 1944 (sic) (Finance Act, 1994).