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TMI Blog2020 (3) TMI 1003X X X X Extracts X X X X X X X X Extracts X X X X ..... stained - petition allowed - decided in favor of petitioner. - Writ Petition No.25820 of 2010 & M.P.Nos.2 of 2010 & 1 of 2011 - - - Dated:- 9-3-2020 - THE HON'BLE MR.JUSTICE R.MAHADEVAN For the Petitioner : M/s. M.Abinaya For the Respondent : Mrs.Hema Muralikrishnan Senior Standing Counsel ORDER In this writ petition, the petitioner has challenged the show cause notice of the respondent in C.No.V/MCA/15/92/2010-ST.Adj, dated 08.09.2010. 2. In the show cause notice, it has been alleged that the petitioner was rendering services that of clubs or association as defined in Section 65 (25a) of the Finance Act, 1994. It has also been alleged that the petitioner, being an incorporated company, the services rende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and perused the materials available on record. 6. Normally, a writ against show cause notice ought not to have been entertained at the first instance and the petitioner ought to have been directed to reply to the said show-cause notice. 7. However, in the present writ petition, an interim injunction was ordered on 16.11.2010 and therefore the impugned Show Cause Notice has not been adjudicated till date. Meanwhile, the Supreme Court has given its verdict on 03.10.2019 in the case of State of West Bengal Vs. Calcutta Club Ltd, supra and the question of law has now been settled. In paragraphs 72, 73, 82, 83 and 84, the Honourable Supreme Court has observed as under:- 71. With this background, it is important now to examine the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It also includes the idea of clothing the agreement in a legal form. In the Oxford English Dictionary, Vol. II, at pp. 875 876, the word constitute is said to mean, inter alia, to set up, establish, found (an institution, etc.) and also to give legal or official form or shape to (an assembly, etc.) . Thus the word in its wider significance, would include both, the idea of creating or establishing, and the idea of giving a legal form to, a partnership. The Bench of the Calcutta High Court in the case of R.C. Mitter and Sons v. CIT [(1955) 28 ITR 698, 704, 705] under examination now, was not, therefore, right in restricting the word constitute to mean only to create , when clearly it could also mean putting a thing in a legal shape. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e expression body of persons may subsumed within it person who come together for a common purpose, but cannot possibly include company or a registered cooperative society. Thus, Explanation 3 (a) to Section 65B does not apply to members club which are incorporated. 83. The expression unincorporated associations would include persons who join together in some common purpose or common action see ICT, Bombay North, Kutch and Saurashtra, Ahmedabad v. Indira Balkrishna (1960) 3 SCR 513 at page 519-520. The expression as the case may be would refer to different groups of individuals either bunched together in the form of an association also, or otherwise as a group of persons who come together with some common object in mind. Whiche ..... X X X X Extracts X X X X X X X X Extracts X X X X
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