2015 (8) TMI 1396 - AT - Service Tax

Club or Association Service - rendering of services by the club to its member - Held that - the issue is no more res integra inasmuch as the Hon ble High Court of Jharkhand in the case of Ranchi Club Ltd. vs. Chief Commissioner of Central Excise & Service Tax 2012 (6) TMI 636 - Jharkhand High Court has held that rendering of services by the club to its members is not taxable under the category of Club or Association Service - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Whether the service provided by the appellant falls under the category of Club or Association Service or not.

Analysis:
The appeal in question was directed against an Order-in-Appeal passed by the Commissioner of Central Excise (Appeals). The issue at hand revolved around determining whether the service provided by the appellant could be classified as Club or Association Service. The appellant, engaged in publishing a regional newspaper in Maharashtra, also operated exclusive forums for women and families, collecting subscriptions from members for various benefits. Both lower authorities had ruled against the appellant based on the definitions outlined in the Finance Act, 1994.

Upon reviewing the submissions from both sides, the Tribunal acknowledged the appellant's activities but found merit in the appellant's argument citing precedents. Reference was made to judgments by the Hon'ble High Courts of Jharkhand and Gujarat, which had held that services rendered by clubs to their members were not taxable under the category of Club or Association Service. Notably, the High Court of Gujarat had struck down relevant provisions of the Finance Act, 1994. Consequently, since the definition of Club or Association Service had been invalidated by higher courts, the Tribunal concluded that there was no basis to uphold the impugned order.

As a result of the above analysis, the Tribunal set aside the impugned order and allowed the appeal with consequential relief, emphasizing the legal precedents and the invalidation of the relevant provisions.