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TMI Blog2009 (6) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... s Registration Act and providing service to its own members. - Employees for the purpose of rendering service, are paid remuneration from amount collected from the members. - in view of the definition ‘any establishment’ occurred in Section 65(52) of the Finance Act, any establishment running health club and fitness centre covered under section65(52) of the Finance Act - The moment an establishment is running “Health club and fitness centre” under Section 65(52) of the Finance Act, 1994 service tax is applicable as there is no explanation of the word “club” under Section 65(52) and its inclusive definition including the appellant club and other similarly placed clubs and therefore the club is registered under the Service Tax Department char ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within the definition of service rendered under any one of the above referred provisions of the Finance Act, 1994. Therefore it does fall within the definition of health and fitness service and club or association ser vice. Therefore the show-cause notice issued by the Department under the provisions of Section 65(25a) of Finance Act is vitiated in law. Hence second question of law arises for consideration of this Court. 5. Further third substantial question of law would also arise for consideration of this Court having regard to the facts and circumstances of the case. The entry relating to club or association Club or Association service is constitution ally valid between the club and member when (the service is rendered by the membe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice tax and its Constitutional validity was examined. While answering the question in favour of the revenue it has been held for consumption of goods sales tax is attracted. For rendering service to the customers, the service tax under the Finance Act is applicable. Therefore on the analogy of the said decision the Division Bench of this court in the case of Century Club and others referred supra wherein it is held charging of sales tax under erstwhile Mysore Sales Tax Act on the basis of the analogy of the decision of the Supreme Court in the case of All India Federation of Tax Practitioners with all fours applicable and therefore requested to set aside the order impugned herein by answering the aforesaid substantial questions of law. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interpretation of Section 65(51) of the Act. It would be relevant for us to extract Sub-Sections 51 and 52 of Section 65 which read thus: Section 65(51): 'Health and fitness service' means service for physical well being such as, sauna and steam bath, Turkish bath, solarium, spas, reducing or slimming salons, gymnasium, Yoga, mediation, massage (excluding therapeutic Massage) or any other like service. Section 65(52): 'Health club and fitness Centre' means any establishment, including a hotel or a resort, providing health and fitness service. 7. A bare perusal of sub-section 52 of Section 65 of the Finance Act after defining 'health club and fitness centre' in establishments including hotel, private health ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ersons who render the health service to the members of the club and they are all employees of the club. They are required to be paid a salary. There will be revision of the salary and terminal benefits. They all would be included in the salary. But they are subjected to disciplinary action of the Management of the club, if they have not employed on contract basis the competent persons to man the Health and fitness service of Century Club to render service. They must be employed for the purpose of rendering service, for their remuneration would be paid collecting from the members. Therefore there is a relationship of such per son and club to render service to its members and under no stretch of imagination, it cannot be said that it is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is for the physical well being of its members and the definition including a hotel or resort providing health and fitness service, the Tribunal has rightly came to the conclusion and held that the Health and fitness Centre is there in the club. Therefore, the contention that it is excluded from the definition, is rightly rejected by the Tribunal and therefore it has rightly concurred with the finding of fact recorded by the Commissioner by holding that appellant is rendering health and fitness service to its members. Therefore the order of the Commissioner respondent is not beyond the scope of the show-cause notice issued and he has upheld the or der of the authority and therefore the contention that the appellant club is excluded under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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