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TMI Blog2015 (6) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... lant was first informed as to there being no tax liability on the meditation courses conducted by them, subsequently there was a change in view of the Board and it was opined that service tax liability arises on the meditation courses. In our considered view, revenue authorities cannot demand service tax liability from the appellants for the period prior to 18 March 2009 - Decided in favour of assessee. - Appeal No. ST/92 & 93/10 - Final Order Nos. A/1359-1360/2015-WZB/STB - Dated:- 27-5-2015 - M V Ravindran, Member (J) And P S Pruthi, Member (T),JJ. For the Appellant : Shri J F Pochkhanwala, Sr Adv. For the Respondent : Shri S V Nair, Asst Comm. (AR) ORDER Per: M V Ravindran: 1. These 2 appeals are directed against Order-in-Original No. VGN (30)/STC-Adj./Commr/Osho/09-10/853 dated 30/11/2009 passed by Commissioner of Central Excise, Pune-III. Since both the appeals are raising the same question of law and facts, they are being disposed of by a common order. 2. The revenue authorities started an investigation against the appellant as to that they providing services of yoga, meditation and massage to the customers/participants on payment of specified cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities of one of the personnel of the appellant's and submit that the said person has categorically stated as to the fact that the meditation courses of the appellant's is for spiritual purposes. He would also draw attention to the negative list of services as introduced after July 2012 and submit that any activity related to spirituality has been exempted from the service tax. He would then draw our attention to a letter dated 25 April 2003, vide which the office of the Chief Commissioner of Central Excise and Customs Pune Zone has clarified to appellants no service tax registration is required for the meditation and yoga. He would submit that subsequently on 18 th February 2009, the Central board of Excise and Customs on an query raised by Commissioner of Central Excise, Pune-III informed that the services rendered by the appellant would be falling under the category of health and fitness Centre . He would submit that when there is a change of mind of the revenue authorities, such a change would be applicable form the date when the revenue authorities informed the appellant. He would rely upon the judgment of the High Court of Bombay in the case of Bhagwati Nylons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd perused the records. It is a case of the revenue that appellants herein fall under the definition of health and fitness services by offering meditation courses for a consideration, while it is a case of the appellant that the meditation courses conducted by them is of spiritual nature and not liable for service tax. 7. In order to appreciate the rival contentions it is required to reproduce the definition as defined in section 65(51) of the finance act 1994 which is as under. 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, meditation, massage (excluding therapeutic massage) or any other like service . 8. It is undisputed that appellants are holding meditation courses for individuals on receipt of an amount as a consideration. The definition of health and fitness services clearly includes the word meditation in the ambit of charging service tax. It was argued on behalf of appellants that the courses conducted by the appellant in medication does not help an individual for physical well-being and physical well-being is the prime requirement f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the impression that the activity of meditation courses would not fall under the category of health and fitness services. We reproduce the said letter dated April 2003. OFFICE OF THE CHIEF COMMISSIONER CENTRAL EXCISE CUSTOMS PUNE ZONE ICE HOUSE, E-WING, 41-A, SASSOON ROAD, PUNE - 01 F.No. IV/16-37/CCOP/SI/2001/PI Pune, the 25 th April, 2003 To: OSHO International Foundation 17, Koregaon Park Pune - 411001 Sir, Sub: Applicability of Service Tax on the activities of meditation run by the OSHO International Foundation - reg., Please refer to your letters dated 09/10/2002 and 14/10/2002 on the above subject. In this regard, clarification was sought from the Board (Ministry of Finance and Company Affairs, Department of Revenue) and from the said clarification, it appears that Service Tax registration is required to be obtained for activities such as aerobics, swimming pool, gym, sauna, steam bath, Turkish bath, etc. only and not for meditation and yoga . Yours faithfully, Sd/- (S.D. Pradhan) Deputy Commissioner Chief Commissioner's office Central Excise Customs Pune Zone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax liability arises on the meditation courses. In our considered view, revenue authorities cannot demand service tax liability from the appellants for the period prior to 18 March 2009. The arguments put forth by the learned departmental representative that revenue can invoke a period of one year from the date of show cause notice is also incorrect argument in the facts of this case. A change in view by the highest body of the indirect taxes can be applied only from the date when the change of view took place. 13. We find that this is the view taken by the Tribunal in the case of Deposit Insurance Credit Guarantee Corporation Vs. CCE ST, Mumbai -Appeals Nos. ST/86491/2013 ST/88305 88324/2014 (wherein one of us was a member). It is also a settled law that when there is a change of the view of the revenue, it can be made applicable only from the date when the change of view took place and informed to the assessee. In view of the foregoing, we find that the appellants have made out a case for setting aside the demand of the service tax liability, interest thereof, and the penalties for the period 01/04/2008 to 17/3/2009. 14. As we have disposed of the appeals on merits, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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