The term commercial concern denotes a firm or a business entity or organisation engaged in commercial activities like sale, purchase or providing services for consideration with a profit motive.
Thus, a hotel’s in-house dry cleaning facility is a commercial concern and liable for service tax if charged for separately. Dry cleaning of own clothes, linen and bedding is not covered. For the service to be taxable, it must be rendered to the guests/customers.
However, if the hotel engages a dry cleaning concern to do the job, then the hotel will step into the shoes of the customer and the dry cleaning concern will be liable to pay service tax.