2014 (7) TMI 792 - AT - Service Tax

Club or Association service - principal of mutuality - export promotion council - period from April 2008 to March 2009 - Held that - Following decision of Federation of Indian Chambers of Commerce and Industry (FICCI) vs. C.S.T., Delhi 2014 (5) TMI 183 - CESTAT NEW DELHI - Order passed by Commissioner (Appeals), New Delhi quashed - Decided in favour of assessee.

Summary

Issues:
1. Stay application hearing leading to appeal disposal with waiver of pre-deposit.
2. Rejection of appeal by Commissioner (Appeals) against service tax demand.
3. Comparison with judgment in Federation of Indian Chambers of Commerce and Industry (FICCI) vs. C.S.T., Delhi regarding ECSEPC.
4. Allowance of appeal, quashing of impugned order, and no costs order.

Issue 1: Stay Application Hearing and Appeal Disposal
The judgment begins with Justice G.Raghuram stating that since the substantive appeal's issues favor the assessee and go against the Revenue, the appeal is disposed of after granting a waiver of pre-deposit at the stay application hearing stage. The appeal is disposed of with the consent of both parties.

Issue 2: Rejection of Appeal by Commissioner (Appeals)
The appeal was filed against an order by the Commissioner (Appeals) rejecting the assessee's appeal against the adjudication order passed by the Joint Commissioner of Service Tax, New Delhi. The primary Authority confirmed a service tax demand of Rs. 18,13,807, along with interest and penalties, stating that the appellant provided 'Club or Association' service during a specific period.

Issue 3: Comparison with FICCI vs. C.S.T., Delhi Judgment
Reference is made to a judgment in Federation of Indian Chambers of Commerce and Industry (FICCI) vs. C.S.T., Delhi, regarding Electronic Computer and Software Export Promotion Council (ECSEPC), which has similar circumstances to the appellant. The Tribunal's judgment in the FICCI case, which both parties agree is favorable to the appellant on all substantive issues, is cited as a basis for allowing the present appeal.

Issue 4: Allowance of Appeal and Quashing of Impugned Order
Based on the comparison with the FICCI case and the favorable judgment therein, the present appeal is allowed. The impugned order by the Commissioner (Appeals) is quashed, and no costs order is issued in this matter.

This comprehensive analysis covers the issues of the stay application hearing, rejection of the appeal, comparison with a relevant judgment, and the final decision to allow the appeal and quash the impugned order.