2016 (11) TMI 1355 - AT - Service Tax

Waiver of pre-deposit - Club Association service - Renting of immovable property service - Health Club fitness service - Development & Supply of Content service - GTA service - IPR service - Held that - prima facie, the demand made in club and association services to the tune of ₹ 1.41 crores is covered by decision of Hon ble High Court of Gujarat in the case of Sports Club of Gujarat Ltd, Vs. UOI 2013 (7) TMI 510 - GUJARAT HIGH COURT , in favour of the applicant. In respect of the various other services like renting of immovable property as well as GTA services we find that significant amount already stands deposited. Considering overall demand, we are of the view that the amounts already deposited would suffice for the purpose of hearing the present appeals. We waive the requirement of the balance amount of service tax demanded, interest thereon and on the penalty till the disposal of the appeal - stay granted

Summary

Issues: Stay applications against service tax demand for five business entities.

Divya Yog Mandir Trust:
The service tax demand on various services includes club association service, renting of immovable property service, health club fitness service, development and supply of content service, GTA service, and IPR service. The advocate argues that a significant portion of the demand under club and association services should be set aside based on legal precedents. The advocate also highlights payments made towards the demands under different services. The Departmental Representative contends that the demand for certain services may still be valid for specific periods due to legislative amendments. The advocate refutes this argument by emphasizing that the demand relates only to amounts collected from members, not non-members.

Yog Sandesh:
The service tax demand is primarily on GTA services and IPR service related to royalty income from the Yog Sandesh magazine. The advocate asserts that the demand linked to copyright over the magazine should be annulled as IPR services did not cover copyright during the relevant period.

Divya Yog Sadhna:
The service tax demand involves GTA services and IPR service concerning royalty income from the grant of copyright for CD/DVD production of yoga programs. The advocate argues that the demand related to copyright should be quashed as copyright was not part of IPR services during the relevant period.

Divya Prakashan:
The demand pertains to GTA services, which the advocate argues should be set aside.

Divya Pharmacy:
The demand includes renting of immovable property service, GTA services, and BSS on income from infrastructure charges. The advocate mentions payments made towards the demands under different services. Notably, the advocate highlights the amount already paid under GTA services and renting of immovable property services.

The Tribunal notes that the demand for club and association services aligns with decisions favoring the applicants from various High Courts. Considering the amounts already paid for different services, the Tribunal waives the balance service tax, interest, and penalty until the appeal's disposal for all entities.

This judgment, delivered on 3/11/16, provides a detailed analysis of the service tax demands against the five business entities, highlighting legal arguments, payment details, and considerations for setting aside certain demands based on legal interpretations and precedents.