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TMI Blog2024 (10) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... ant is an association for the purpose of liability of service tax and eligible for exemption. Since appellant is eligible for exemption on merits, the appeal and the impugned order confirming the demand of duty and imposition of penalty is set aside.' Thus, it is settled that any charges collected by a company towards the treatment of hazardous waste of the industries who are the members of the company who operates effluent treatment is not liable to service tax. From N/N. 08/2017 ST dated 20.02.2017 issued under Section 11C of Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994 , the services by operator of common effluent treatment plant by way of treatment of effluent is exempted. Therefore, for period prior 01.07.2012 as well as post 01.07.2012, the service of effluent treatment of hazardous waste did not liable to service tax. The impugned order is set aside - appeal allowed. - HON'BLE MEMBER ( JUDICIAL ) , MR. RAMESH NAIR And HON'BLE MEMBER ( TECHNICAL ) , MR. RAJU Shri Amit Laddha , Advocate for the Appellant Shri Himanshu P Shrimali , Superintendent ( AR ) for the Respondent ORDER RAMESH NAIR M/s. Sachin Infra Environment Limited , S-25, Ari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hri Amit Laddha, Learned Counsel appearing on behalf of the Appellant at the outset submits that this issue is no more res-integra as on the identical issue the matter has been decided in the favour of the assessee. He placed reliance on the following judgments:- Green Environment Services Co.Op Society Ltd vs. UOI 2015 (37) GSTL 961 (Guj.) Vapi Waste and Effluent Management Co vs. C.C.Ex 2012 (28) STR 356 (T) Nandesari Ind Association vs. C.C.Ex 2020 (38) GSTL 46 (T) Sakal Papers Pvt Ltd vs. C.C.Ex 2018 (12) GSTL 79 (T) Federation of Hotel and Restaurant Association of India vs. C.S.T 2018 (10) GSTL 33 (T) State of West Bengal vs. Calcutta Club Ltd - 2019 (29) GSTL 545 (SC) The Samuel Business Part-E Co.Op Service Society Ltd vs. CST Service Tax, Ahmedabad Final Order No. 12734/2023 dated 5.12.2023 M/s. Perundurai Common Effluent Treatmnet Plant vs. Commissioner of Central Excise and Service Tax, Salem 2023 (3) TMI 239 CESTAT Chennai 2.1 He further submits that from period 01.07.2012 to 31.03.2015 the activity of treatment of effluent by common effluent treatment plant was exempted retrospectively vide notification no. 08/2017-ST dated 20.02.2017. 3. Shri Himanshu P Shrimali, Lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority confirmed the duty demand with penalty and interest as mentioned above. The petitioners have, therefore, separately challenged such order-in-original. 3. Learned counsel, Shri Shelat for the petitioners pointed out that initially the show cause notice was issued basing the recoveries on Section 65(19) of the Finance Act, 1994 however, realizing that such demand would not be maintainable under said provision, separate show cause notice was issued why the services provided by the petitioner No.1 society to its members be not classified as one under Club or Association and accordingly chargeable under Section 65(25a) of the Finance Act, 1994. It was on this basis that the Commissioner of Service Tax in the impugned order confirmed the Service Tax demand. It was held as under :- 37. Since it was found that the service provided does not fall under the category of business auxiliary service as alleged in the show cause notice dated 28-2-07, but it appeared to fall under the category of club or association services as defined under section 65(2Sa) of the Finance Act, 1994 from 16-6-05 onwards, a notice was issued to M/s. GES on 7-8-07 asking them to show cause as to why the servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent, its persuasive value is not lost and it can always be considered by this Court for its persuasive value, more particularly when the said judgment has relied upon a decision of the Full Bench of Patna High Court in the matter of Commissioner of Income-Tax v. Ranchi Club Ltd., 1992(I) PIJR 252 (Pat) (FB), which is referred to by the Division Bench. The learned advocate for the Department also submitted that there is no question of mutuality because the club is a legal entity as it is incorporated under the Companies Act. This Court is unable to accept the submissions made by learned advocate for the Department because they were the very facts before the Division Bench for consideration and learned advocate for the Department could not set out any convincing grounds on which this Court should not follow the decision of the Division Bench of Jharkhand High Court. In the result, these petitions are allowed and it is hereby declared that Section 65(25a), Section 65(105)(zzze) and Section 66 of the Finance (No. 2) Act, 1994 as incorporated/amended by the Finance Act, 2005 to the extent that the said provisions purport to levy Service Tax in respect of services purportedly provided by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 78 of Finance Act, 1994. 3. The learned counsel for the appellant submitted that with the introduction of Section 145 in the Finance Act, 2012, the services provided by club or association in relation to common facilities set up for treatment and recycling effluent and solid waste with the financial assistance from the Central Government or State Government have been given exemption with retrospective effect from 16-6-2005. The period involved in the dispute is covered by the provision of Financial Act, 2012 and therefore the demand is not sustainable. Learned A.R. submitted that appellant is not an association but a limited company and therefore is not covered by the exemption with retrospective effect. Only club or association including registered co-operative society is covered. Therefore he submits that the impugned order has to be upheld. 4. We have considered the submissions made by both sides. The demand of service tax has been confirmed on the ground that the appellant is an association of industrial units in Vapi formed for the purpose of setting up and running common facility for treatment and recycling of effluent and solid waste discharged by the units who are require ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by Notification No. 1/2012-S.T., club or association service provided by an association in relation to a common facility set up for treatment and recycling effluent or solid waste is exempted from the service tax. This notification has been given retrospective effect by Section 145 of Finance Act, 2012 from June, 2005. 7. The observations above show that the service tax was demanded from the appellant on the ground that appellant was an association and was collecting subscription from the members for running of common facility for treatment of effluents and solid waste for the benefit of members. Such services rendered by an association have been exempted and given retrospective effect from June, 2005 by Notification and the Finance Act, 2012 discussed above and therefore the appellant is squarely covered by the exemption Notification and the activities undertaken by them is not liable to Service Tax. 8. It was submitted by the learned A.R. that the appellant company being a limited company is not covered by the term association and exemption available is only to the association. However, it was pointed out by the learned counsel that the appellant is registered under Section 25 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been exempted by Section 145 of Finance Act, 2012 which is reproduced below. 145. Validation of exemption given to club or association including cooperative societies in relation to project. - (1) The notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 566(E), dated the 25th July, 2011, issued in exercise of the powers conferred by sub-section (1) of Section 93 of the Finance Act, 1994 (32 of 1994), granting exemption from the whole of service tax leviable under Section 66 thereof, on the club or association service referred to in sub-clause (zzze) of clause (105) of Section 65 of the said Act, provided by a club or an association including registered cooperative societies, in relation to the project, shall be deemed to have, and deemed always to have, for all purposes, validly come into force on and from the 16th day of June, 2005, at all material times. (2) Refund shall be made of all such service tax which has been collected but which would not have been so collected as if the notification referred to in sub-section (1) had been in force at all material times. (3) Notwithstanding anything contained in the Finance Act, 1994 (3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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