The Hindus’ marriage ceremony is not a religious but a social function and various kinds of service providers, including those erecting tents for it, are not exempted from paying service tax, the Delhi High Court ruled today. A bench of Chief Justice Dipak Misra and Justice Sanjiv Khanna gave this ruling dismissing a plea by All India Tent Dealers’ Welfare Organisation, contending they should be exempt from paying service tax for erecting tent for holding the marriage ceremony as it is primarily a religious function.
The tent service providers had contended “that no service tax can be levied on the erection of pandal or shamiana for a Hindu marriage is fundamentally a sacrosanct and sacred religious function and can never be treated as a social function to invite the levy of service tax.”
The tent service providers had contended “that no service tax can be levied on the erection of pandal or shamiana for a Hindu marriage is fundamentally a sacrosanct and sacred religious function and can never be treated as a social function to invite the levy of service tax.”
But the court dismissed the contention saying “the contention that Hindu marriage is not a contract but a sacred institution and hence, no service tax is imposable treating it as a social function has to be repelled and we so do.”
“We do not perceive any merit in this writ petition and, accordingly, the same stands dismissed,” the court said.
The tent service providers had come to the court seeking exemption from paying service tax as per provisions of the Section 135(A)(10), 2007 of the Finance Act, which permits imposition of service tax on service providers to organise social functions but not the religious function.
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