2013 (30) STR 27 (A.P.) Tirumala Tirupati Devastthanams vs. Supdt. Of Customs, Central Excise, S.T., Tirupati.

Facts:
The Appellant – Tirumala Tirupati Devasthanams (TTD) is constituted as a Charitable Trust under the relevant Act and running some guest houses for pilgrims with declared tariff of Rs. 1,000/- per day or above. A notice was issued to the Appellant asking them to registere under “accommodation service” and pay service tax with effect from 01-05-2011 and the demand was confirmed accordingly. Therefore, a writ petition was filed contending that the petitioner was not a club or an association but a religious and charitable institution running the guest houses without any profit motive.

Held:
The Hon. High Court observed that Clause 65(105) (zzzw) of the Finance Act dealt with service tax on short term accommodation. The taxable service is defined as “services provided to any person by a hotel, inn, guest house, club or camp-site, by whatever name called, for providing of accommodation for a continuous period of less than three months.” The Appellant could not place on record any exemption granted to religious and charitable institutions which ran guest houses without any profit motive. It was held that, there was no doubt that the petitioner was running guest house, whether it may be called a shelter for pilgrims or by any other name. There is no dispute that it has been running this guest house for a considerable time. They were liable to be registered for payment of service tax and finding no error in the view taken by the respondents, the petition was dismissed.