2014 (2) TMI 705 - AT - Service Tax

Demand of service tax - Secretarial Service Tax under the heading Member Club and Association Service - convention service - specialised services which are nothing but recovery of charges for issuing country of origin certificate - Held that - Except the convention service, the other two services are whether in relation to provision of service, facility or privilege to membership does not come out clearly form the adjudication order, which is a pre-requisite of the taxing entry. Prima facie, it does not appear that the impugned services are integrally connected to the membership. However, we do not express any opinion at this stage. But so far as convention service is concerned, there is already a deposit of Rs. 9,00,000/- approximately as stated by learned Counsel. Subject to verification thereof by Revenue as against the demand of Rs. 12,66,921/-, on that count realisation of the balance demand raised in adjudication shall be stayed during pendency of the appeal - Stay granted.

Summary

Issues:
1. Tax demand related to Secretarial Service Tax under the heading Member Club and Association Service.
2. Tax demand related to convention service.
3. Tax demand related to specialised services for issuing country of origin certificate.

Analysis:

Issue 1: Tax demand related to Secretarial Service Tax under the heading Member Club and Association Service
The appellant contested the tax demand of Rs. 81,36,424/-, arguing that Secretarial Service Tax under the heading Member Club and Association Service should not be applicable as the taxing entry only covers membership-related aspects. The contention was that services not falling within the taxing entry should not be subject to tax. The adjudication order did not clearly establish the connection of the services to membership. The tribunal did not express a definitive opinion on the matter at that stage.

Issue 2: Tax demand related to convention service
A tax demand of Rs. 12,66,921/- was raised for convention services. The appellant acknowledged a recovery of approximately Rs. 9,00,000/- related to this demand. The tribunal noted the deposit made by the appellant and decided to stay the realization of the balance demand during the appeal process, subject to verification by the Revenue.

Issue 3: Tax demand related to specialised services for issuing country of origin certificate
The third count of demand pertained to specialised services for issuing country of origin certificates, which the appellant argued were not related to the membership of the club. The Revenue supported the adjudication, claiming that all three services were connected to the chamber of commerce membership. The tribunal referred to a CBEC Circular stating that issuing country of origin certificates falls under 'technical inspection and certification agency' service, which attracts service tax. The tribunal observed that the connection of the specialised services to membership was not clearly established in the adjudication order.

In conclusion, the tribunal decided to stay the realization of the balance demand related to convention services pending verification by the Revenue. The issue of tax demand for Secretarial Service Tax and specialised services for country of origin certificates required further examination to determine their connection to membership, as per the taxing entry.