9911796707
TMI Blog2018 (1) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... render the part of repair service in India will bring the tax liability to the appellant in view of the proviso to Rule 3 (ii) of Taxation of Services Rules, 2006 - repair and maintenance service is liable to tax. Time limitation - penalties - Held that: - the ingredients for invoking extended period could not be sustained in the present demand. There could be no malafide or misrepresentation attributable in such circumstances of the case - demand should be restricted to the normal period - the penalties imposed on the appellants are also not sustainable. Appeal allowed in part. - ST/55001/2013-[DB] - ST/A/58130/2017-CU[DB] - Dated:- 28-11-2017 - Mr. S.K. Mohanty, Member (Judicial) And Mr. B. Ravichandran, Member (Technical) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. Counsel appearing for the appellant submitted that they have no liability to pay Service Tax under Club or Association Services. There is no service provider/ service recipient relationship between the appellant and the members who availed the service of aircrafts provided by the appellant. He relied on the decision of Hon ble Gujarat High Court in the case of Sports Club of Gujarat Ltd. 2013 (31) STR 645 (Guj.) and decision of Tribunal in FICCI, 2015 (38) STR 529 (Tri-Del). 4. Regarding tax liability under repair maintenance service, it is submitted that the aircraft engine is taken to France and the repair is carried out by the M/s Honeywell, outside India. M/s Honeywell engaged another person M/s Airworks, in India to re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o more res-integra as there are no services provider-service recipient relationship between the club and the members as held in various juridical pronouncements. The case laws relied upon by the appellant, cited above squarely applies to the facts of the present case. As such we hold that there could be no liability of Service Tax on the appellant under the category of Club or Association Service. It is also to be noted that the appellants were registered and have been paying Service Tax under the category of supply of tangible goods after the introduction of such tax entry w.e.f. 16/05/2008. 8. Regarding the appellant s tax liability under Repair and Maintenance Service, we note that the repair of aircraft engine will encompass removal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the demand on limitation. Admittedly, Service Tax, if any, payable by the appellants on repair and maintenance service is fully available as a credit to them. They were registered with the department and were discharging the Service Tax under the category of supply of tangible goods. The Repair and Maintenance Service is with reference to such tangible goods (aircraft). Accordingly, the ingredients for invoking extended period could not be sustained in the present demand. There could be no malafide or misrepresentation attributable in such circumstances of the case. Accordingly, while upholding the tax liability on merit we find that the said demand should be restricted to the normal period. On the same reasoning, the penalties imposed on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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