2014 (7) TMI 852 - AT - Service Tax

Health and Fitness service - sale of booklet - activity of teaching the art of yoga - Held that - The booklet which is part of the appeal, titled as Lifesaver only gives the benefits of yoga and also gives the names of 20 asanas which were being taught in the Institution. Further we find that in the present appeal, in the brief facts which were duly verified by the appellants, it has been specifically mentioned that the appellants are a Trust registered under the Maharashtra State to teach the art of yoga as the yoga is therapeutic and restorative. In view of these facts, we find that the appellants are clearly providing a service as covered under health and fitness service - Decided against assessee.

Summary

Issues:
Appeal against demands confirmed for providing health and fitness service under Section 65(1)(42) of the Finance Act.

Analysis:

1. Nature of Service Provided:
The appellants contested that they were not offering fitness services but treating specific ailments through a combination of yoga and medicines. They argued that they treated patients as outdoor patients for particular ailments, not merely providing fitness training. The outdoor slips issued to patients and certain photographs were presented to support their claim. The Revenue, however, referred to the appellants' booklet "Lifesaver" which allegedly demonstrated teaching yoga asanas, thus justifying the demand.

2. Legal Interpretation of Health and Fitness Service:
The Tribunal examined the definition of 'health and fitness service' under section 65(1)(42) of the Finance Act, which includes services like yoga for physical well-being. By referring to the provisions, the Tribunal concluded that the appellants' activities fell under this category. The booklet "Lifesaver" highlighted yoga benefits and listed specific asanas taught by the appellants, reinforcing the connection to health and fitness services.

3. Verification of Facts and Trust Registration:
The Tribunal noted that the appellants' brief facts confirmed their registration as a Trust in Maharashtra to teach therapeutic and restorative yoga. This verification, along with the content of the booklet and the nature of services provided, led the Tribunal to determine that the appellants were indeed offering services falling within the ambit of 'health and fitness service.'

4. Decision and Dismissal of Appeals:
Based on the above analysis, the Tribunal found no fault in the impugned order confirming the demands and penalties. Consequently, the appeals were dismissed, upholding the Revenue's position regarding the nature of services provided by the appellants.

This detailed analysis of the judgment highlights the key arguments presented by the parties, the legal interpretation of relevant provisions, and the Tribunal's reasoning leading to the dismissal of the appeals.