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TMI Blog2018 (7) TMI 1537X X X X Extracts X X X X X X X X Extracts X X X X ..... eld that:- By making such payments, such person does not become the member of the Trust as such, but become the lease-holder for a particular accommodation respective to the price paid by him under the Scheme. This observation is sufficient to hold that such person become the shareholders of the appellant’s Scheme but not the members of the Trust. Such members cannot be cloth with the status as that of founder members of the Trust and the element of mutuality therefore, is missing in such a relationship - The Trust and the member of Vanprastha Ashram Scheme become two different legal entities. Any services of club and association being provided by the appellant to such members are therefore, taxable services under Section 65 (25a) - demand upheld. As far as the plea of the appellant being charitable in nature, we draw our support from the case of FICCI vs. CST, Delhi [2014 (5) TMI 183 - CESTAT NEW DELHI], wherein it was held that for any association to be called as the one of charitable nature discharging the public service it is essential and necessary that the activity qua which the demand has been raised must be essential and necessary for the proper functioning of the organi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the intention to evade the same. After conducting basic investigation, show cause notice dated 18th October, 2012 was served upon the appellant raising a demand of ₹ 5,14,54,521/- Service Tax for rendering the taxable service of Club and Association while receiving subscriptions in the form of Donations qua the Membership and service tax for the amount received for leasing the cottages under Swami Sankaradev Vanprastha Ashram Scheme, for rendering the renting of immovable property service and also with respect to intellectual property service. The said demand has been confirmed vide the order under challenge. Resultantly, the present appeal. 2. We have heard both the parties. 3. It is submitted that 3 demands have been raised by the Department as follows:- S.No. Services Amount on which ST confirmed in Rs. ST after cum- tax. in Rs. 1 Club or Association Service On Membership Donations 45,09,44,169/- 4,59,89,553/- 2 Club or Associa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs under the said pretext are concerned. The order is justified qua confirming the demand on Club and Association Services. Coming to the demand with respect to Intellectual Property Services, it is mentioned that the permission by the appellant for telecast their Yoga Shivers in the News Channels is the permission for the work of the appellant exclusively being the thought of appellant is nothing but the service of providing Intellectual Property. The demand to that extent has also been rightly confirmed. Appeal is accordingly, prayed to be rejected. 5. After hearing both the Counsels and perusing the entire record, we are of the opinion: 5.1 It is the apparent fact that appellant is a Trust engaged in the activities of teaching Yoga and for research on Vedic traditions of Yoga and are registering the interested people in these activities as their members. The Department has considered the activities of the appellant under the category of Club and Association Services as defined under Section 65 (25) A of the Finance Act, 1994 and taxable under Section 65 (105) (zzze) of the Act. The decision of Sports Club of Gujarat by the Hon ble High Court of Gujarat is actually relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. 8. Now coming to the demand qua the donations received by the appellant under one of its Scheme called Vanprastha Ashram Scheme, it is held that under this scheme the appellant was leasing the accommodation to all those who are interested to visit the appellant premises till their life time on payment of certain amount ranging from ₹ 5,00,000/- to 21,00,000/-. By making such payments, such person does not become the member of the Trust as such, but become the lease-holder for a particular accommodation respective to the price paid by him under the Scheme. This observation is sufficient to hold that such person become the shareholders of the appellant s Scheme but not the members of the Trust. Such members cannot be cloth with the status as that of founder members of the Trust and the element of mutuality therefore, is missing in such a relationship. The transaction with such members will be the one with some other person with no principle of mutuality involved. As such, the Trust and the member of Vanprastha Ashram Scheme become two different legal entities. Any services of club and association being provided by the appellant to such members are therefore, taxable ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or incidental to the primary or dominant purpose of the Association/Trust. 11. In the present case, the members of Vanprastha Ashram Scheme are not member of the Patanjali Trust, the appellant herein, but are the members under particular scheme of the said Trust for the only purpose of being leased out a residential accommodation for their life time. The said leasing, to our opinion, is not ancillary and incidental object to the main charitable object of the appellant Trust. No doubt the members of Vanprastha Ashram Scheme are also getting that accommodation for attending the Yoga Camps but the fact is apparent and admitted that Yoga Camps can still be attended by any member of the appellant Trust irrespective of the being the member of Vanprastha Ashram Scheme. Hence, the consideration received as lease money under this scheme by the appellant is a consideration not because of mutuality between the appellant and the members of the said scheme, as discussed above, but is purely commercial in nature. Hence, for this particular consideration the benefit of exemption for appellant being charitable in nature cannot be granted. The said consideration is taxable under 65 (25AA) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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