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TMI Blog2018 (2) TMI 1052X X X X Extracts X X X X X X X X Extracts X X X X ..... n of services. Such donations even if made by the non-members, cannot be made liable to service tax under the Finance Act, 1994 - Appeal allowed - decided in favor of appellant. - ST/234/2011 - Final Order Nos. 40366-40385/2018 - Dated:- 6-2-2018 - M/s. The Council for Leather Exports, M/s. The Salem Fairlands Recreation Club, M/s. Tamilnadu Spinning Mills Association, /s. Eldorado Owner Occupants Association, M/s. Kodaikanal Golf Club, M/s. Alumini Club, Anna University, M/s. India ASEAN Srilanka Chamber of Commerce and Industry, M/s. Tamil Nadu Chambers of Commerce and Industry, M/s. Madras Printers Lithographers Assn., M/s. Chennai Corporate Club Pvt. Ltd , M/s. The Council for Leather Exports, M/s. Kodaikanal Club Versus CCE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inance Act, 1994. The impugned orders in all the appeals filed by the assessees confirmed/upheld the various demands proposed in the related SCNs. Revenue has also filed four appeals in cases where the related impugned orders have set aside the demand of service tax either on merits or on limitation. All these cases were taken up for common hearing and disposal. 2. Today when the matter came up for hearing, on behalf of all the aforesaid assessees, the Ld. Advocates through Advocate Shri Akhil Suresh made a common submission that the Hon ble High Court of Jharkhand in the case of Ranchi Club Ltd. Vs. Chief Commissioner of Central Excise and Service Tax, Ranchi Zone 2012 (26) STR 401 (Jhar.) has held that if a club provides any service to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Vs. Bankipur Club Ltd., decided on 08.05.1997 and reported as 226 ITR 97, where the aspect of mutuality was discussed. 4. Heard both sides and have gone through the facts of the matter. 5.1 In all these appeals the period involved is prior to 2012. We find that the assessees are correct in their assertion that the issues in dispute are fully covered by the ratio of the judgments of Ranchi Club Ltd., (supra) and Sports Club of Gujarat Ltd., (supra). 5.2 The Hon ble High Court of Jharkhand in Ranchi Club Ltd., held as under:- 18. However, learned counsel for the petitioner submits that sale and service are different. It is true that sale and service are two different and distinct transactions. The sale entails transfer of prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dgment. Learned advocate submitted that the Department has filed SLP before the Hon ble Apex Court and the judgment is under challenge. Merely because the judgment is not accepted by the Department, its persuasive value is not lost and it can always be considered by this Court for its persuasive value, more particularly when the said judgment has relied upon a decision of the Full Bench of Patna High Court in the matter of Commissioner of Income-tax v. Ranchi Club Ltd., 1992 (1) PLJR 252 (Pat) (FB), which is referred to by the Division Bench. 7.1 Learned advocate for the Department also submitted that there is no question of mutuality because the club is a legal entity as it is incorporated under the Companies Act. This Court is unable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iation. We further find that this dispute was essentially a matter concerning liability or otherwise to income tax on such incomes and not one relating to liability to service tax or otherwise under Finance Act, 1994. This being so, we are afraid that the said judgments will not help the case of Revenue. 5.6 This Bench, following the ratio laid down in Ranchi Club Ltd. and Sports Club of Gujarat Ltd., judgments (supra) has held, in the case of CST, Chennai Vs. Madras Club Ltd., Final Order No. 43060/2017 dated 05.12.2017 that there cannot be service tax liability on the amounts collected by the clubs under various categories from their members. 5.7 The Ld. Advocates in all these cases (except Ld. Advocate Shri Akhil Suresh) confirm th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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