9911796707
TMI Blog2010 (10) TMI 460X X X X Extracts X X X X X X X X Extracts X X X X ..... excluded from the gross value for levy of service tax - The appellant has not brought on record any evidence as to the partition of the amount towards the cost of the land to their sister concern - Find that the appellant’s case is on a more stronger footing, if they are able to demonstrate that the amount on which the lower authorities are seeking service tax, has been actually transferred to their sister concern, then the Board’s circular would apply and binding on the Revenue officers, as has been settled by the Hon’ble Supreme Court in the case of CCE, Bolpur v. Ratan Melting & Wire Industries - Hence, set aside the impugned orders and remand the matter back to the lower authorities - ST/173 and 466/2009 - 1323-1324/2010 - Dated:- 7-10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued and Adjudicating Authority by different impugned orders confirmed the demands raised in the show-cause notices and also directed for payment of interest and imposed consequential penalties. 3. Mr. Joseph Vellapally, Sr. Counsel and Ms. Rukmani Menon, Advocate appeared for the appellant. Ld. Sr. Counsel would draw our attention to the effect that the appellant herein has offered a membership to general public as Membership (with or without land) . He would submit that those who opted for membership with land, they were discharging the service tax liability on the membership fees and were not discharging the service tax liability on the cost of the land. It is his submission that the land is procured by their sister concern i.e. M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the club or association for providing facilities or advantages, the assessee is liable to discharge the service tax liability. It is his submission that the valuation of the taxable service is a gross amount charged. He would submit that in the case in hand the appellant had offered membership with land to the members which would amount to collection of subscription for the advantages, that could accrue to a person by applying for the said membership. It is his submission that the appellant has not brought on record any evidence as to the partition of the amount towards the cost of the land to their sister concern. He would rely upon the CBEC s circular dt. 27-7-2005 which was issued subsequent to the inclusion of the Club or Associat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icate at para 10.5, that amount charged by the club to its members for sale of items such as food or beverages would not be taxable provided the documents evidencing such sales are available. This would indicate that the Club or Association was not required to include the cost of sale of items to the members for discharge of service tax liability. In the case in hand before us, it is undisputed that the membership fee (with land) collected by the appellant is towards the membership fee and towards the cost of the land. If it is the contention of the appellant that the cost of the land was transferred to their sister concern M/s. Amrutha Estates for allotting the plot to members who opted for such membership (with land), then these amounts ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
