2015 (11) TMI 161 - SCH - Service Tax

Demand of service tax - Mandap Keeper service - Supreme Court dismissed the appeal filed by Revenue since the tax effect in the present appeal is a meagre one. The appeal was filed against the decision of Trbinal 2005 (5) TMI 2 - CESTAT BANGALORE ; wherein Tribunal held that analysis and the rules and by-laws in the Memorandum and Articles of Association of the instant case are same as in the case of Saturday Club Ltd. The Hon ble High Court distinguished the term of Mandap Keeper with that of Members Club and has finally concluded that Members and Club both are same entity. It is held that one may be called as principal when the other may be called as agent therefore such transaction in between themselves cannot be recorded as income sale or service as per applicability of the revenue tax of the country. Hence the Court has held that I do not find it is prudent to say that members club is liable to pay service tax in allowing its members to use its space as mandap . The analysis of the Calcutta High Court in the case of Saturday Club Ltd. clearly applies to the facts of this case and applying ratio thereof the demand of service tax on the appellant is set aside.