9911796707
TMI Blog2022 (1) TMI 1127X X X X Extracts X X X X X X X X Extracts X X X X ..... e Commissioner] confirming the demand of service tax with interest and penalty. 2. The appellant is a trust registered under the Registration Act, 1908. It was constituted on 05.01.2009 with an aim to carry out charitable objects, which amongst others included yoga education and training for achieving a disease-free and healthy India. 3. The appellant is also registered under section 12AA read with section 12A of the Income Tax Act, 1961 [the Income Tax Act]. The appellant claims that in order to fulfill its objectives, it engaged itself in organizing residential as well as non-residential yoga camps to propagate yoga training and vedic knowledge for which it received donations from its members. 4. An enquiry was, however, conducted i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce, which had invoked the provisions of the Finance Act as applicable during the pre and post-negative list period; (ii) The amount of contribution (membership donations) received from the members is directly relatable to various privileges assured to the members and thus, the said amount of contribution is liable to service tax. The decision of Gujarat High Court in Sports Club of Gujarat Limited vs. Union of India [2013 (31) STR 645 (Guj.)] is not applicable to the present case in as much as the same dealt with the provisions of the Finance Act prior to 30.06.2012; (iii) Explanation 3 to section 65B(44) of the Finance Act treats an unincorporated association or body of persons and its members as distinct persons. Further, the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hird show cause notices, while proposing the demand of service tax on the amount received post 01.07.2012, neither invoke nor mention the charging provisions i.e. section 66B and section 66B(44) of the Finance Act; (iii) The demand of service tax on membership donations is not sustainable as the activities of the appellant are exempt under Notification dated 26.09.2016 from 01.07.2012 to 20.10.2015; (iv) The activities of the appellant are exempt under Notification dated 20.06.2012 w.e.f. 21.10.2015; (v) The doctrine of principle of mutuality is also applicable in the present case; (vi) The appellant is not liable to pay service tax on the freight amount paid by it; and (vii) Interest is not recoverable and penalty is not imposabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was liable to service tax, in the said period, which was not being paid according to the said practice. Now, therefore, in exercise of the powers conferred by section 11C of the Central Excise Act, 1944 (1 of 1944), read with section 83 of the Finance Act, 1994 (32 of 1994), the Central Government hereby directs that the service tax payable under section 66B of the Finance Act, 1994, on the service by way of advancement of Yoga provided by entities registered under section 12AA of Income-tax Act, 1961 (43 of 1961) in the said period, but for the said practice, shall not be required to be paid." 12. The appellant is registered under section 12AA of the Income Tax Act and the education and training in yoga provided by the appellant is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) terminally ill persons or persons with severe physical or mental disability, (ii) persons afflicted with HIV or AIDS, or (iii) persons addicted to a dependence-forming substance such as narcotics drugs or alcohol, or (b) public awareness of preventive health, family planning or prevention of HIV infection; (ii) advancement of religion or spirituality; (iii) advancement of educational programmes or skill development relating to,- (a) abandoned, orphaned or homeless children; (b) physically or mentally abused and traumatized persons; (c) prisoners; or (d) persons over the age of 65 years residing in a rural area; (iv) preservation of environment including watershed, forests and wildlife; or (v) advancement of any other objec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of goods by road and issues consignment notes, by whatever name called. In the present case, consignment notes have not been issued and so the activities cannot be said to be covered under 'goods transport agency' services. 19. In this connection it would be useful to refer to the decision of the Tribunal in Bhoramdeo Sahakari Shakhar Utpadam Karkhana vs. Commissioner of Customs, Central Excise & Service Tax, Raipur [2019 (10) TMI 1416 - CESTAT, New Delhi], wherein it has been held that service tax can be levied only if consignment notes are issued. 20. Thus, service tax liability could not have been fastened on the appellant under the reserve charge mechanism. 21. It would, therefore, not be necessary to examine the other contentions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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