COMMISSIONER OF CENTRAL EXCISE 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.) THE Commissioner (Appeals), in the impugned order, has observed that in the instant case, the Mutt is not giving the hall for any official, social or business functions but only giving for religious functions and is also not charging any rent, but sometimes, the followers are giving the money as donation or 'Padakanika' to the Pontiff of the Mutt and hence, the activity undertaken is not a taxable activity and do not attract service tax.