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2015 (3) TMI 667 - AT - Service TaxClub Membership - charitable organization or not - Services are being provided in respect of the export of goods to their members - certification fees, membership fees and various export activities - Extended period of limitation - Held that - In the decision in the matter of Federation of Indian Chambers of Commerce and Industries & Other (FICCI) Vs CST, Delhi 2014 (5) TMI 183 - CESTAT NEW DELHI it was held that, Services provided by the appellants to non members and the consideration received for rendition of such service, fall outside the scope of the definition of club or association service and the taxable service defined in Section 65(25a) read with Section 65(105)(zzze) of the Act, prior to 01.05.2011. The Memorandum of Association of the applicant are similar to the memorandum of Association in the case of M/s. FICCI (supra). It is also noted that CBEC vide Circular No.145/14/2011-ST dt. 19.8.2011 clarified that service tax paid on technical inspection and certification of export goods is eligible for refund under Notification No.17/2009-ST dt. 7.7.2009. Prima facie case is in favor of assessee - stay granted.
Issues:
1. Liability to pay service tax on membership fee of club or association service. 2. Applicability of the decision in the case of Federation of Indian Chambers of Commerce and Industries. 3. Barred by limitation for demand of service tax. 4. Interpretation of the Memorandum of Association in relation to the services provided. 5. Prima facie similarity of objectives with the case of FICCI and applicability of the decision. 6. Waiver of entire amount of tax, interest, and penalty during the pendency of the appeal. Issue 1: Liability to pay service tax on membership fee of club or association service. The case involved the liability of the applicants to pay service tax on the membership fee of club or association service for a specific period. The adjudicating authority confirmed the demand of service tax along with interest and penalty. The key argument was whether the services rendered by the applicants fell under the purview of taxable services. Issue 2: Applicability of the decision in the case of Federation of Indian Chambers of Commerce and Industries. The advocate for the applicant relied on the decision in the case of Federation of Indian Chambers of Commerce and Industries to support their argument. The Tribunal's decision in that case was crucial in determining whether the applicants' activities could be considered similar to those of FICCI and thus fall outside the definition of "Club or Association" for service tax purposes. Issue 3: Barred by limitation for demand of service tax. The applicant contended that the entire demand was barred by limitation, emphasizing that the department was aware of their activities. The argument revolved around whether the demand for service tax was raised within the prescribed time limit. Issue 4: Interpretation of the Memorandum of Association in relation to the services provided. The Memorandum of Association of the applicant company outlined the objectives related to supporting and promoting the exports of leather and related products. The interpretation of these objectives was crucial in determining the nature of services provided by the applicants and whether they were liable for service tax. Issue 5: Prima facie similarity of objectives with the case of FICCI and applicability of the decision. The Tribunal found prima facie similarities between the objectives of the applicant and those of FICCI, a body that had previously been considered outside the scope of taxable services. This similarity influenced the decision regarding the liability of the applicants for service tax. Issue 6: Waiver of entire amount of tax, interest, and penalty during the pendency of the appeal. Based on the discussions and findings, the Tribunal concluded that the decision in the case of FICCI was applicable, and the demand was barred by limitation. Consequently, the Tribunal waived the entire amount of tax, interest, and penalty during the appeal's pendency, allowing the stay application. This detailed analysis of the judgment provides insights into the various issues addressed, the arguments presented by both parties, and the Tribunal's decision based on legal interpretations and precedents.
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