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TMI Blog2013 (11) TMI 347X X X X Extracts X X X X X X X X Extracts X X X X ..... uction (CER) Certificates under the Clean Development Mechanism (CDM) of the United Nations Framework Convention of Climate Change (UNFCC), which are tradable internationally for consideration. The applicant collected these certificates from their members and sold the certificates to the Carbon Asset Service, Sweden. The applicant received the sale proceeds and transferred the amount to the members after retaining 5% of the sale proceeds. In the impugned order, service tax of Rs.1,23,58,430/- along with interest and penalty was demanded on the value of 5% of the sale proceeds under the category of 'Business Auxiliary Service'. There is another demand of tax of Rs.12,66,878/- under the 'Club or Association Service'. 2. The learned counsel s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntent to evade payment of tax. He further submits that the amount retained by them were used to meet the administrative expenses and for the welfare of the members in the spinning industry. He submits that it is a non-profit organization. 4. On the other hand, the learned AR submits that the applicant as an association is supposed to provide services beneficial / advantageous to their members against subscription charges. He submits that the activity of sale and purchase of the certificates is not within the regular course of business of the association. It is a business activity as evident from the agreement and therefore the demand of tax under 'Business Auxiliary Service' is leviable. He submits that the applicant received the commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to another in the light of the decisions of the Hon'ble Supreme Court. In our considered view, the activities of the applicant in the present case are rendering service on behalf of the members in their business, and earned commission, which would not come within the purview of normal course of activities of club or association. The submission on limitation would be examined at the time of hearing the appeal at length. In view of that, the applicant failed to make out a prima facie for waiver of entire amount of dues. Considering the prima facie nature of the case and the financial hardship pleaded by the applicant, we direct the applicant to deposit a further amount of Rs.15,00,000/- (Rupees fifteen lakhs only) within a period of eight we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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