INDIA TRADE PROMOTION ORGANISATION Vs. CCE

JUDGEMENT

(1.) M /s. India Trade Promotion Organization (ITPO) has been registered as a charitable organization under Section 25 of the Companies Act 1956. The main objectives of this organization as enumerated in Memorandum of Association are as under: -

(2.) ITPO organizes trade fairs in its Pragati Maidan complex. Business participants in those trade fairs hire out halls/stalls belonging to ITPO for the purpose of displaying their products and to carry out business operations during the fair. These stalls are hired out to participants in fairs organized by parties other than ITPO. The Election Commission of India also hired out ITPO's premises for storing ballot boxes, election materials and for counting votes. Rent was paid to ITPO in all these cases of hiring of its stalls. In the order impugned in this appeal Commissioner of Central Excise (Appeals) Delhi has held that ITPO functions in renting out its stalls as a "mandap Keeper" and rents received are liable to service tax as value of "service provided to client by a mandap keeper in relation to the use of a mandap"

(3.) SECTION 65 of the Finance Act 1944 contains definitions of "mandap", "mandap keeper" and taxable service." The dispute is to be required decided in the light of these definitions. In order to facilitate the discussion of the issue, we read these definitions: