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TMI Blog2018 (12) TMI 945X X X X Extracts X X X X X X X X Extracts X X X X ..... lub or Association Membership Service’ as provided in Section 65(25a) of the Finance Act, 1994 - Further, the scope of ‘Club or Association Membership Service’ have been discussed and clarified vide Board Letter MD(DR) F No. B1/6/2005-TRU dated 27.7.2005. It is clarified vide the said Circular that any service provided or to be provided to its Members by any Club or Association in relation to provision of services, facilities or advantages for a subscription or any other amount are liable for service tax. In the present case, the service recipients are totally independent person and they are only the customers who avail services of the appellant independently under the scheme formulated by the appellant. Further, the appellants are not p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Directorate General of Central Excise Intelligence, Bangalore (BZU), that Palm Meadows are rendering various club facilities without paying appropriate service tax on the said service, documents relevant for further investigation were collected from them under summons proceedings. Statement of Shri T. R. Sathyanarayana Bhat, Manager-Accounts of Palm Meadows was recorded on 25.4.2007. 2.3 On verification of the records submitted, it appeared that Palm Meadows are providing services, which are classifiable under the category of Club or Association Membership Service , which is taxable from 16.6.2005. They are providing various services and facilities to their Members viz., card room, library, children s are in the main building, swim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mptions by ignoring the statutory provisions. He further submitted that the nature of activity undertaken by the appellant is not that of Club or Association Membership Service . The persons who are being named as Members in the show-cause notice are not the Members of the appellant, instead they are customers of the appellant. The Club or Association in general is formed by the Members who intend to avail services from Club or Association and in the concept of Club or Association there will not be any independent person other than such body and the Members who are forming it. Further, the Members of the private limited company are different from the customers who are named as Members in trade practice. He further submits that to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Business Division of the appellant Palm Meadows Club as a separate entity and the customers are members of that entity is not proper and legal. He further submitted that even for the sake of argument the issue of taxability of service tax on the fee collected from the Members have been clearly decided in favour of the assessee in the following case laws: Ranchi Club Ltd. vs. UOI: 2012 (26) STR 401 (Jhar.) Sports Club of Gujarat Ltd. vs. UOI: 2013 (31) STR 645 (Guj.) 5. On the other hand, the learned AR defended the impugned order and submitted that the activities carried out by the appellant fall in the taxable service of Club or Association Membership Service and they are liable to pay service. 6. After consideri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the sake of argument, we consider the appellant as a Club or Association even then the entrance fee charged by the appellant is not liable to service tax in view of the following decisions. Ranchi Club Ltd. vs. UOI: 2012 (26) STR 401 (Jhar.) Sports Club of Gujarat Ltd. vs. UOI: 2013 (31) STR 645 (Guj.) Surat Tennis Club vs. UOI: 2016 (42) STR 821 (Guj.) Green Environment Services Coop. Society Ltd. vs. UOI: 2015 (37) STR 961 (Guj.) DD Retreat vs. CCE: 2017 (52) STR 506 (Tri.-Bang.) Century Club vs. CCE, Bangalore: Final Order No.21458-21460/2018 dated 25.9.2018. 6.1 In view our discussions above, we are of the considered view that the activities carried out on by the appellant does not fall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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