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TMI Blog2019 (7) TMI 1787X X X X Extracts X X X X X X X X Extracts X X X X ..... l not invite imposition of Service Tax. In the present case also, it is not in dispute that the department has sought to tax the amounts received as corporate membership prior to 16/06/2005 on proportionate basis after the introduction of the levy of service tax on club and association services - the levy on such amounts cannot be sustained and hence the demand to that extent is set aside. Levy of service tax - Junior and NRI Membership as also on account of Corporate membership from Greaves Cotton Limited - HELD THAT:- The Appellants have already paid the service tax on the said amounts, however interest on the same has not been paid by the Appellant. Thus, interest on the said amount is payable by the Appellant for delayed payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Explanation 3 inserted in the Section 67 of the Finance Act, 1994 w.e.f. 13/05/2005 for the period 2005-06 (up to Dec 2005) amounting to ₹ 41,15,076/- including cess and also for non payment of service tax on Junior membership and NRI membership billed in July 2005 and Oct 2005 respectively amounting to ₹ 38,969/-. Thus the total demand being ₹ 41,54,045/-. The Appellant had submitted its reply before the Ld. Adjudicating Authority with proof of payments made under protest for the entire amount of demand of service tax. The Ld. Adjudicating authority, however, proceeded to confirm the demand of entire service tax along with interest and imposed a penalty of ₹ 83,00,000/- under section 78 on the Appellant. On appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat since the entire demand was paid under protest before the issuance of SCN, the question of penalty does not arise and the levy itself on the corporate membership fees received prior to 16/06/2005 cannot sustain. In this regard he relied on the following decisions :- a. CARRIER POINT Versus COMMISSIONER OF CENTRAL EXCISE, JAIPUR 2018 (10) G.S.T.L. 213 (Raj.) b. M/s ENCHANTED WOODS CLUB LTD Vs COMMISSIONER OF CENTRAL EXCISE, LUDHIANA2014-TIOL-849-CESTAT-DEL c. BANGALORE CLUB Vs COMMISSIONER OF CENTRAL EXCISE BANGALORE-I 2019-TIOL-138-CESTAT-BANG d. NOBLE INSTITUTE (EDUCATION) PVT. LTD. Versus COMMR. OF S.T., AHMEDABAD 2008 (10) S.T.R. 374 (Tri. - Ahmd.) Further, the Ld. CA also stressed upon the invocation of extend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hing classes in relation to the Coaching. 31. In that view of the mater, it is very clear that prior thereto, there is authority interpretation of the provision as services which are referred to be provided in future was not covered. Even otherwise in view of the law Concluded Contract cannot be revived in view of subsequent development which will lead to a very odd situation with the assessee and he has to suffer in his business and has to face the breach of contract. 32. In that view of the matter when we have to interpret the taxing statute, we have to interpret Article 265 and the possibility of interpretation should not be avoided to be very impracticable for either of the side. 33. In that view of the matter, we make it clear tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demand itself not being sustainable, the question of invoking suppression cannot be upheld in the current case. We rely on the decision of the Tribunal in NOBLE INSTITUTE (EDUCATION) PVT. LTD. Versus COMMR. OF S.T., AHMEDABAD 2008 (10) S.T.R. 374 (Tri. - Ahmd.) wherein in a similar issue as to taxability of amounts received prior to levy of tax, it was held that 3 In any case, no question was ever raised by the appellant s jurisdictional Central Excise authorities questioning the disclosure of the fees amount collected prior to 1-7-2003, when it is a common knowledge that such fees are collected at the start of the financial year. The said services were made leviable to tax only w.e.f. 1-7-2003 and such collection of fees amou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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