2015 (10) TMI 2748 - AT - Service Tax

Levy of service tax - appellant who are a Co-operative Housing Society were collecting monthly subscription from its members and utilised the funds so collected to manage, maintain and administer the buildings - Held that - The matter stand covered in appellant s favour in the case of MATUNGA GYMKHANA, TAHNEE HEIGHTS CO-OP HOU SOC LTD AND MITTAL TOWER PREMISES CO-OPERATIVE SOCIETY VERSUS COMMISSIONER OF SERVICE TAX, MUMBAI 2015 (1) TMI 1146 - CESTAT MUMBAI , where it was held that In view of the decision of the Gujarat High Court in Sports Club of Gujarat Limited 2013 (7) TMI 510 - GUJARAT HIGH COURT , as the relevant provisions (namely Section 65(25a), Section 65(105)(zzze) and Section 66 of the Act), to the extent these provisions purport to levy service tax in respect of services provided by a club or association to its members is declared ultra vires, we hold that there are no operative legislative provisions of the Act legitimizing the levy and collection of service tax from the appellants, for providing club or association service, in so far as these relate to any services provided to members of these appellants. Levy of service tax on such service is not sustainable - appeal dismissed - decided against Revenue.

Summary

The Appellate Tribunal CESTAT MUMBAI dismissed the stay application against the Order-in-Appeal passed by the Commissioner (Appeals) on 21-5-2015. The issue involved a Co-operative Housing Society collecting monthly subscriptions from its members. The Tribunal found the matter covered in favor of the appellant based on previous judgments and dismissed both the stay petition and appeal.