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Circular No. 200/10/2016-Serviet
F. No. 354/45/2016-TRU
Government of India
Ministry of Finance
Department of Revenue
(Pax Research Unit)

Dated: 6° September, 2016
To
Prineipal Chief Commissioners of Customs and Central Excise (All) Principal
Chief Commissioners of Central Excise & Service Tax (All) Principal Director
Generals of Goods and Service Tax/System/CEI Director General of Audi Tax
Payer Servie«
Principal Commissioners! Commissioners of Customs and Central Excise (A\l)
Principal Commissioners/Commissioners of Central Excise and Service Tax
(a)
Principal Commissioners/Commissioners of S
Principal Commissioners/Commissioners LTU/Central
(Audity


vice Tax (AI)
cise/Service Tax


Madam Sie,
Sub: Clarification regarding scope of Notification No. 25/2012-Service Tax
dated 20.06.2012, SI. No. 5(a)..

1am directed to refer to the above mentioned subject and to say that it has
come to notice of the Ministry that difficulties are being faced in interpreting the
scope of Notification No, 25/2012-Service Tax dated 20.06.2012, SI. No. 5(a).
2, ‘The matter has been examined. The said notification exempts services by way
‘Religious Place’
hhas been defined in the notification to mean a place which is primarily meant for
of renting of precincts of a religious place meant for general publ
conduct of prayers or worship pertaining to a religion, meditation or spirituality

“General Public’, according to the notification, means the body of people at large,
suliciently defined by some common quality of public or impersonal nature
ing or

‘nance Act, 1994 as allowing, permit

‘Renting’ has been defined in the

granting access, entry, occupation, use or any such fi

in any immovable
property, with or without the transfer of possession or control of the said immovable
property. However, the word ‘precincts’ appearing in the notification has not been
defined and this gives rise to difficulty/ disputes in interpreting scope of the said
exemption notification
3. The meaning of the word ‘precincts’ as given in various dictionaries is as
under:~
Cambridge English Dictionary
The area that surrounds a building or place. especially one with a wall around it."
Random House Unabridged Dictionary
Precincts:
“Precincts, the parts or regions immediately surrounding a place: environs: the
precincts of town.”
“The ground immediately surrounding a church, temple, or the like.
“A
walled or otherwise bounded or limited space within which a building or place is
situated.”

‘The immediate neighborhood of a palace or court.”
4. In the case of CCE, Mangalore Vs. Dakshina Kannada Mogaveera Mahajana
Sangha [2010(17) STR
Bangalore held after perusing the photographs of the temple complex that since the
entire
temple complex and marriage hall were enclosed by a boundary wall, the

8 (Tri Bang)]., involving identical issue, CESTAT,
marriage hall was within the precincts of the temple and thus eligible for benefit of
Notification No. 14/2003-Service Tax.

5. The Supreme Court has also held in the context of Notification No, 63/1995-
Central Exeise dated 16.03.1995, in the ease of South Eastern Coalfield Lid. Vs.

Commissioner of Customs and Central Excise, Madhya Pradesh{2006(200) E.L.T.
357 (S.C.)] that the word ‘precincts’ has to be given the broader meaning and not the
narrower meaning. The word ‘precinct’ in the exemption notification No. 63/1995-
Central Excise dated 16.03.1995 was interpreted by the Hon’ble Apex Court to mean
the surrounding region or area, as defined in Collins English Dictionary or the
surroundings or environs of a place as defined in the New Shorter Oxford English
Dictionary.

6. In view of the above, ficld formations may not take a restricted view of the
word ‘precincts’ and consider all immovable property of the religious place located
within the outer boundary walls of the complex (of buildings and facilities) in which
the religious place is located, as being located in the precincts of the religious place.
The immovable property located in the immediate vicinity and surrounding of the
religious place and owned by the religious place or under the same management as the
religious place, may be considered as being located in the precincts of the religious
place and extended the benefit of exemption under Notification No. 25/2012-Service
Tax, SI. No, 5(a) dated 20.6.2012.
7. Wide publicity may be given so that the assessees and public are aware of the
above. All the major Industry and Trade Associations may be informed accordingly.
Difficulty if any, in the implementation of the Circular should be brought to the notice
of the Tax Research Unit.
8. All concerned are requested to acknowledge the receipt of this Circular.
Hindi version would follow,
Yours faithfully,
&
(Dr. Ravindra Kumar)
Technical Officer (TRU-H)
Tele No. 01 1-23095547