Tirumala Tirupati Devasthanams vs Superintendent of Customs, Central Excise and Service Tax, Tirupati and Another

Madan B. Lokur, C.J.—The petitioner-Tirumala Tirupati Devasthanams (TTD) is constituted under the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987. It is said to be running some guest houses for pilgrims and the declared tariff is said to be Rs. 1000 per day or above. The petitioner was issued notices by the respondents for being registered as on "accommodation service" for the purpose of levy of service tax under the Finance Act.

The petitioner responded to the notices, but an order was issued on May 25, 2011 to the effect that the petitioner should obtain service tax registration immediately under the category of "accommodation service" and pay the service tax with effect from May 1, 2011.

Feeling aggrieved, the petitioner has filed the present writ petition. It is contended that the petitioner is not a club or an association. It may be noted that it is not the case of the respondents that the petitioner is either a club or an association. Therefore, it is not necessary to deal with this submission.

It is also submitted by Learned Counsel for the petitioner that the petitioner is a religious and charitable institution and is running guest houses without any profit motive. We have asked Learned Counsel for the petitioner to show us if there is any exemption that has been granted in this regard, but he is not able to show us any exemption. We note that in the order dated May 25, 2011 (impugned) there is a mention of an exemption of 50 per cent, by a notification dated May 1, 2006 read with notification dated April 25, 2011. However, there is no absolute exemption granted to the petitioner.

We have seen the Finance Act, also and in clause 65(105) thereof, Parliament has inserted sub-clause (zzzzw), which deals with the applicability of service tax to the following category of persons :

65(105)(zzzzw) to any person by a hotel, inn, guest house, club or campsite, by whatever name called, for providing of accommodation for a continuous period of less than three months.

There is no doubt that the petitioner is running guest houses, by whatever name they are called, whether it is a shelter for pilgrims or any other name. There is no dispute that it has been running these guest houses for a considerable time. Under these circumstances, the petitioner is liable to have itself registered for payment of service tax. We find no error in the view taken by the respondents in this regard. We find no merit in this petition and it is accordingly dismissed. Interim application is also dismissed.