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2015 (10) TMI 2623 - AT - Service TaxClub membership - Levy of service tax - charges received by the Club from their members for providing services - Held that - matter is no longer res integra and stands decided in the case of Matunga Gymkhana v. Commissioner of Service Tax, Mumbai 2015 (1) TMI 1146 - CESTAT MUMBAI , where it was held that in view of the decision in Ranchi Club Limited (2012 (6) TMI 636 - Jharkhand High Court), on application of the principle of mutuality, services provided by the appellants to their respective members would not fall within the ambit of the taxable club or association service nor the consideration whether by way of subscription/ fee or otherwise received therefor be exigible to service tax - appeal allowed - decided in favor of appellant.
Issues: Taxability of charges received by a Club providing services to its members under Section 65(105)(zzze) of the Finance Act.
In the judgment by the Appellate Tribunal CESTAT MUMBAI, the appellant, a Club providing services to its members, was in dispute with the Revenue regarding the taxability of charges received from members under Section 65(105)(zzze) of the Finance Act. The Revenue argued that the charges received by the Club for services provided to its members were taxable. The Tribunal considered the "Article of Association" governing the Club's functioning, including membership details and management powers. After hearing both sides and reviewing relevant facts and submissions, the Tribunal referred to previous judgments, including Matunga Gymkhana case, Federation of Indian Chambers of Commerce & Industry case, Sports Club of Gujarat Ltd. case, and Ranchi Club Ltd. case, which had addressed similar issues. Based on these precedents, the Tribunal concluded that the matter was no longer res integra and had been settled by previous judgments. Consequently, the Tribunal set aside the impugned order and allowed the appeal in favor of the appellant. The operative part of the decision was pronounced in court, bringing the matter to a close.
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