2021 (7) TMI 258 - HC - Service Tax

Levy of service tax - Membership of Clubs and Association Service - HELD THAT - This issue has been dealt with by the Supreme Court in STATE OF WEST BENGAL ORS. VERSUS CALCUTTA CLUB LIMITED AND CHIEF COMMISSIONER OF CENTRAL EXCISE AND SERVICE ORS. VERSUS M/S. RANCHI CLUB LTD. 2019 (10) TMI 160 - SUPREME COURT which judgment the assessing authority did not have the benefit of, at the time when the impugned order-in-original was passed. The matter remitted to the file of the Assessing authority to be redone afresh - Petition allowed by way of remand.

Summary

Issues involved:
1. Challenge to order-in-original dated 31.03.2016 levying service tax under the head 'Membership of Clubs and Association Service'.
2. Validity of Statements of Demand (SOD) for subsequent periods post order-in-original dated 31.03.2016.

Analysis:

Challenge to order-in-original dated 31.03.2016:
The High Court addressed the challenge to the order-in-original dated 31.03.2016, which imposed service tax under the Finance Act, 1994 for 'Membership of Clubs and Association Service'. The petitioner disputed this liability. Both counsels acknowledged that the Supreme Court had previously ruled on a similar issue in State of West Bengal Vs. Calcutta Club Limited. As the assessing authority was unaware of this judgment at the time of passing the impugned order, the High Court set aside the order and remitted the matter back to the Assessing authority for reconsideration in light of the Supreme Court's decision. The case was disposed of accordingly, with no costs imposed.

Validity of Statements of Demand (SOD) for subsequent periods:
The High Court examined the challenge against the Statements of Demand (SOD) issued for periods following the order-in-original dated 31.03.2016. The court noted that there was an interim stay on the original order, rendering the subsequent SODs misconceived. Despite this, the core issue of tax liability under 'Membership of Clubs and Association Service' remained the same. Consequently, the High Court set aside the impugned SODs and directed the Assessing authority to reevaluate the petitioner's tax liability for all relevant periods, adhering to the law and the Supreme Court's judgment in Calcutta Club Limited. The Assessing authority was instructed to complete this review within sixteen weeks from the date of the judgment. The cases related to the SODs were disposed of accordingly, with no costs awarded.

This comprehensive analysis of the judgment highlights the key legal issues addressed by the High Court and the decisions rendered in each instance, ensuring a detailed understanding of the legal proceedings involved.