2018 (9) TMI 1507 - AT - Service Tax

Liability of Service Tax - Club or Association Services - Held that - The Club Services have been held to be ultra vires and not liable to service tax by various decisions of the High Courts - The Hon ble Calcutta High Court in the case of Dalhousie Institute vs. Assistant Commissioner reported at 2006 (003) STR 311 (Calcutta) and in the case of Saturday Club Ltd. vs. Assistant Commissioner 2004 (6) TMI 11 - HIGH COURT CALCUTTA has held that no service tax is attracted in respect of services rendered to the members of the club - demand set aside. CENVAT Credit - duty paying invoices - non-original documents - Held that - Inasmuch as there is no dispute about the receipt of input services as also by taking note of the fact that there was no liability of appellant to pay the service tax, there is no justification for confirmation of the said demand. Appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Request for adjournment for the Appellant.
2. Service tax liability on Club or Association Services.
3. Denial of Cenvat Credit on non-original documents.

Analysis:
1. The judgment addresses the issue of a request for adjournment by the Appellant, which was rejected. The Tribunal proceeded to decide the appeal due to the disputed issue being covered by previous decisions, emphasizing the importance of timely adjudication in legal matters.

2. The Tribunal examined the service tax liability of the Appellant related to providing services categorized as "Club or Association Services." The demand amounting to Rs. 61,52,207 was confirmed against the Appellant based on allegations of non-payment of service tax on the full value of services. However, the Tribunal referenced various High Court decisions, such as the Calcutta High Court and Gujarat High Court rulings, which held that no service tax is attracted for services rendered to club members. Consequently, the Tribunal set aside the demand, interest, and penalty imposed on the Appellant, as the Club Services were deemed ultra vires.

3. Another issue addressed in the judgment pertains to the denial of Cenvat Credit amounting to Rs. 15,74,096 to the Appellant based on the use of non-original documents for availing credit. Despite the confirmation of this demand, the Tribunal found no justification for it, considering the absence of a liability to pay service tax by the Appellant. Therefore, the Tribunal set aside the demand and the penalty associated with it, providing consequential relief to the Appellant.

In conclusion, the Tribunal set aside the impugned order, allowing the appeal in favor of the Appellant based on the legal precedents and lack of justification for the demands and penalties imposed.