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TMI Blog2024 (5) TMI 1340X X X X Extracts X X X X X X X X Extracts X X X X ..... mbers, by any club or association in relation to provision of services, facilities or advantages for a subscription or any other amount . The said definition was amended w.e.f. 16.05.2011 and reads as any service provided or to be provided to its members, or any other person, by any clubs or association membership service in relation to provision of services, facilities or advantages for a subscription of any other amount . The relationship of a member with its association and vice versa is hit by the doctrine of mutuality. There is no service provider and service recipient relationship . The issue as to whether the subscription / entrance fees collected by the association from its members can be subjected to levy of service tax under the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be treated as commission. We find that the demand under BAS cannot sustain and requires to be set aside. Ordered accordingly. Renting of Immovable Property Services - For the reason of the taxable value under this category falls below the threshold limit is to be examined by the Adjudicating Authority. This issue is remanded to the Adjudicating Authority for the limited purpose of verification. In case, the amount is above the threshold limit, the appellant is liable to pay the service tax along with interest, and also the penalties in this regard for the respective period. Thus, the impugned order is modified to the extent of setting aside of the demand of service tax, interest and penalties under Club or Association Services, Supply of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iption and entrance fees collected from the members as there is no service provider and service recipient relationship between the appellant to its members. The issue as to whether service tax can be demanded on the membership / entrance fee collected from members has been settled by the decision in the case of M/s. Ranchi Club Ltd. Vs. Chief Commissioner of Central Excise and Service Tax, Ranchi Zone [2012 (26) STR 401 (Jhar.)] and in the case of M/s. Sports Club of Gujarat Ltd. Vs. Union of India [2013 (31) STR 645 (Guj.)]. The said decision was applied by the Tribunal in the case of M/s. Erode Lorry Owners Association Vs. Commissioner of GST and Central Excise [Final Order No. 40368/2019 dated 21.02.2019]. It is prayed that the demand ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard, uniform subsidy, pump standing fee and air gauge repair charges cannot be subject to levy of service tax under BAS. It is submitted that these are in the nature of reimbursable expenses as the charges are incurred by the appellant for verifying whether the vehicles are in proper condition at the time when they leave the depots. The demand under BAS cannot legally sustain. It is prayed that the same may be set aside. 2.4 In regard to the demand made under Renting of Immovable Property Services, the Ld. Counsel submitted that the amount is very low and would come within the threshold limit. The demand therefore cannot sustain. It is prayed that the appeal may be allowed. 3. The Ld. Authorised Representative Shri R. Rajaraman appeared for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue is with regard to the demand made under Supply of Tangible Goods Services. Section 65(105)(zzzzj) of the Finance Act, 1994 defines the service as any service provided or to be provided to any person, by any other person in relation to supply of tangible goods including machinery, equipment and appliances for use, without transferring right of possession and effective control of such machinery, equipment and appliances . In the present case, the appellant has provided transportation of goods to the oil companies. It cannot be considered as Supply of Tangible Goods Services. Even in the books, they have accounted the amount received by them as lorry freight. This indicates that the appellant has received freight charges for transportati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be said that the appellant is engaged in purchase and sale of goods on behalf of the oil companies. The appellant is merely engaged in providing transportation of goods for the oil companies. The Show Cause Notice is not clear as to how this amount is to be treated as commission. We find that the demand under BAS cannot sustain and requires to be set aside. Ordered accordingly. 5.4 The quantification of the demand on various categories of service is given in paragraph 7 of the order passed by the Original Authority dated 24.01.2014. On perusal, it is seen that the taxable value under the category of Renting of Immovable Property Services for the period 2007-2008, 2008-2009 and 2009-2010 are below the threshold level. It is submitted by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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