SAYAJI HOTELS LTD. Vs. UNION OF INDIA (UOI)

JUDGEMENT

(1.) With consent heard finally.

(2.) Petitioner claims to be a Company engaged in the business of running hotel in Indore. According to the Petitioner, it provides various services to its guests including rooms, restaurants, health club, swimming pool, taxi service, banquet hall etc. It is the case of the Petitioner that for services relating to banquet hall which it provides for its guests it is registered as 'Mandap Keeper' as defined under the Service Tax Act. It has been stated that it provides food and beverages during the functions organized in the banquet hall.

(3.) It is the case of the Petitioner that for supply of food and beverages it was paying Sales Tax (VAT) as was applicable. From March 2005 the Petitioner was paying service tax on the gross amount charged from the guests under the 'Mandap Keeper Service' excluding the value of food and beverages sold by it in terms of Notification No. 12/2003 -S.T., dated 20-6-2003. Thus, the Petitioner claims that it was collecting and paying service tax on the full amount of service charges, tent house charges, decoration charges, stage charges on the amount charged from the guest.