No Service Tax Demand on Convention Centre Service for Period Prior to 18.04.2006: CESTAT [Read Order]

The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) observed that No service tax can be demanded on Convention Centre Service for period prior to 18.04.2006.

The counsel for the appellant submitted that as regards, the demand of service tax of Convention Centre Services, she submits that the entire demand in respect of convention centre services pertaining to the period prior to 18.04.2006 when Section 66A was introduced.

It was hence submitted that the entire demand on this service is liable to be set aside and further as per Rule 3(ii) of the Import Rules, receipt of convention services shall qualify as import only if the services are performed in India. In the present case, the services have been performed outside India, therefore, this demand is also liable to be set-aside.

A Two-Member Bench comprising SS Garg, Judicial Member and P Anjani Kumar, Technical Member observed that “As regards, the demand of service tax on Convention Centre Service, we find that the entire demand in respect of Convention Centre Services pertains to the period prior to 18.04.2006 hence no service tax can be demanded for the period prior to 18.04.2006 as Section 66A was introduced only w.e.f. 18.04.2006.

“We also find that as per Rule 3(ii) of the Import Rules, receipt of convention services shall qualify as import only if the services are performed in India and therefore, it cannot be taxed in India. Hence, we set-aside this demand also” the Bench concluded.

To Read the full text of the Order CLICK HERE

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