[2008] 15 STT 487 (Kolkata - CESTAT)/[2008] 9 STR 162 (Kolkata - CESTAT)[25-07-

2007]

[2008] 15 STT 487 (KOL. - CESTAT)

CESTAT, KOLKATA BENCH
Commissioner of Central Excise, Siliguri
v.
Mahabir International
D.N. PANDA, JUDICIAL MEMBER
ORDER NO. A-1405 (KOL.) OF 2007 APPEAL NO. ST/46 OF 2006
JULY 25, 2007

Section 65 of the Finance Act, 1994 - Event management service - Period 1-12-2004 to 7-12-2004 - Assessee
had arranged a Yoga Camp for certain charitable trust - Revenue alleged that assessee had realized Rs. 2.50
crores from said trust for organizing said event and said money was taxable under category of ‘Event
management service’ - Assessee contended that even though amount of Rs. 2.50 crores was realized, entire
money was given to trust in support of a noble cause and it had not received any consideration for
organizing said camp and therefore, it was not liable to pay service tax under category of ‘Event
Management Service’ - Whether since revenue had not brought any evidence to prove that assessee had
carried out a commercial activity and received any gross value by organizing said Yoga Camp, such an
activity could not be treated as event management service, and, therefore, amount in question could not be
taxed - Held, yes [Para 3]
J.K. Jha for the Appellant. B.N. Chattopadhyay for the Respondent.

>> ORDER
1. Revenue came in appeal with the short question that whether the money collected as Event Manager by Mahabir
International shall be taxable under Finance Act, 1994 and the first Appellate Authority was justified to set aside
the order of adjudication. The ld. JDR appearing for the appellant submitted that the ld. Commissioner (Appeals)
totally misconstrued the entire facts and circumstances and made the event management service tax free. Such an
activity having been brought to tax defining the scope by section 65(105)(zu
) of the Finance Act, 1994, the event
management service money received was liable to service tax.
2. The ld. Consultant appearing for the respondents submitted that the appellant being charitable trust enjoyed tax
exemption under income-tax law as its object was carrying out charitable activity and public utility services for no
profit. It had arranged a Yoga Shibir at Siliguri for a week from 1-12-2004 to 7-12-2004 and that was conducted by
Swami Ram Dev of Divya Yog Mandir Trust. Such an activity was not event management service and no
consideration was received towards the yoga camp. Even though the amount of Rs. 2,50,00,000 (Rupees Two
crores and Fifty lakhs only) was realized entire money was given to trust of Swami Ram Dev and nothing was
received from Divya Yog Mandir Trust. It being only a charitable institution it had supported a noble cause and in
absence of gross value received for any commercial service that is not liable to service tax.
3. Heard both sides and perused the record. The ld. Commissioner (Appeals) has examined the entire facts and
found that there was no evidence brought by revenue to prove its allegation that the appellant has realized Rs. 2.50
crores from Divya Yog Mandir Trust in relation to the event management. In absence of any evidence proving that
the appellant had carried out a commercial activity and received any gross value from such activity of event
management, they cannot be taxed on tickets by an arbitrary assessment. The reasoned and speaking order passed
by the ld. Commissioner (Appeals) does not call for interference. Accordingly, revenue’s appeal fails.