Page 124 - GSTL_18th June 2020_Vol 37_Part 3

338 GST LAW TIMES [ Vol. 37
2020 (37) G.S.T.L. 338 (Tri. - Del.)

IN THE CESTAT, PRINCIPAL BENCH, NEW DELHI
[COURT NO. I]
Justice Dilip Gupta, President and Shri C.L. Mahar, Member (T)
MGF EVENT MANAGEMENT
Versus
COMMISSIONER OF CENTRAL EXCISE, DELHI
Final Order No. ST/A/50154/2020-CU(DB), dated 3-2-2020 in Appeal
No. ST/53191/2014
Management, Maintenance or Repairs services - Parking services pro-
vided in Malls - Demand raised on parking fees collected on behalf of assessee
by outside agency appointed to manage parking area - Assessee claiming that
no written contract entered with Mall owners and no monetary consideration
by way of rent or space allocation paid to Mall owners for operating parking
area, hence service provider and service recipient relationship not existing be-
tween parties - HELD : Parking space area cannot be given to assessee without
any agreement with respect to financial consideration or without agreement
with respect to contingent liabilities with respect to theft, injuries, fire or other
liabilities - Even otherwise, activity covered within definition of ‘management,
maintenance or repairs‘ - Service recipient, Mall owners, need not receive any
pecuniary consideration from service - Service without any direct pecuniary
benefit to service recipient, also to be called service - Plea of assessee that no
monetary consideration being paid by Mall owners, without substance - Right
to collect parking fees given by Mall owners, to be nothing but consideration
provided to assessee by Mall owners and measure of such consideration to be
gross income generated through parking fees - Levy of Service Tax on activity
under ‘Management, Maintenance or Repair service’, upheld - Sections 65(64),
65(105)(zzg) and 73 of Finance Act, 1994. [paras 6, 7, 8]
Valuation (Service Tax) - Management, Maintenance or Repairs ser-
vices - Parking fees collected from visitors of Malls - Assessee’s submission
that gross income to include Service Tax also and taxable income ought to be
computed after abating amount of Service Tax from gross income in terms of
Section 67(2) of Finance Act, 1994, correct - Income shown in balance sheet as
parking fees to be considered as cum-tax value for determination of Service
Tax - Also assessee eligible to avail Cenvat credit of Service Tax paid on input
services, provided to assessee by third party agency or any other service pro-
viders in providing said service of ‘management, maintenance and repairs‘ of
parking area - Case remanded to adjudicating authority to redetermine taxable
demand, interest and penalties - Sections 65(105)(zzg) and 67(2) of Finance Act,
1994. [para 9]
Words and Phrases - Consideration for service - If consideration is in
terms of some benefit to service provider which can be measured or converted
into money, same to constitute valid consideration - Section 67(2) of Finance
Act, 1994. [para 6]
Demand - Limitation - Extended period, Invocation of - Mis-
declaration and wilful suppression - Income of parking fees suppressed in rel-
GST LAW TIMES  18th June 2020  124