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TMI Blog2025 (4) TMI 766X X X X Extracts X X X X X X X X Extracts X X X X ..... against impugned orders passed by the Commissioner of Central Excise (Appeals), Mangalore. 2. Appellants are Credit Cooperative Society engaged in providing services under the category of Banking and Financial Services during the relevant period. They were issued with show-cause notices from time to time alleging that even though they have rendered the services under the Banking and Other Financial Services for the period from 2007 to 2012, they failed to discharge appropriate Service Tax on the said services. Consequently, it was proposed to recover Service Tax along with interest and penalty as mentioned under the respective show-cause notices. These show-cause notices have been adjudicated and the demands raised in each of the notices h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 949 whereas the Cooperative Society registered under Karnataka Cooperative Society Act, 1959, hence, the cooperative society cannot be considered as rendering banking and other financial services by any stretch of imagination. Further, he has submitted that the learned Commissioner (A) erred in observing that a cooperative society cannot be equated with the club. Further, the learned Commissioner (A) overlooked the fact that both the clubs and cooperative societies operate for the benefit of their Members based on the Principles of Mutuality. He submitted that appellants are catering to the needs of the Members exclusively and their Membership is limited to the persons situated within the territorial jurisdiction of Dakshina Karnataka inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port of his contention, he referred to the following case laws: * Madhav Nagrik Sahakari Bank Ltd. vs. Commissioner of C. Ex. Indore-I: 2012 (27) STR 352 (Tri.-Del.) * Godavari Valley Labour Contract Cooperative Society Ltd. vs. CCE, Vishakapatnam: 2023 (10) TMI 430 - CESTAT-Hyd. * Contai Cooperative Bank Ltd. vs. UOI: 2017 (49) STR 133 (Cal.) * Rajasthan Ex-servicemen Welfare Cooperative Society Ltd. vs. CCE (Appeals), Jaipur: 2017 (10) 1357 - Rajasthan High Court 5. Heard both sides and perused the records. 6. The short issue involved in the present appeal for consideration is whether the appellants are required to discharge service tax on different services rendered by them to their Members. It is not in dispute that the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 74. The next question that arises is - was any difference made to this position post-1st July, 2012? 75. It can be seen that the definition of "service" contained in Section 65B(44) is very wide, as meaning any activity carried out by a person for another for consideration. "Person" is defined in Section 65B(37) as including, inter alia, a company, a society and every artificial juridical person not falling in any of the preceding sub-clauses, as also any association of persons or body of individuals whether incorporated or not. 76. What has been stated in the present judgment so far as Sales Tax is concerned applies on all fours to Service Tax; as, if the doctrine of agency, trust and mutuality is to be applied qua members' clubs, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing service. In these definitions, the expression "body of persons" cannot possibly include persons who are incorporated entities, as such entities have been expressly excluded under Sections 65(25a)(i) and 65(25aa)(i) as "anybody established or constituted by or under any law for the time being in force". "Body of persons", therefore, would not, within these definitions, include a body constituted under any law for the time being in force. 81. When the scheme of Service Tax changed so as to introduce a negative list for the first time post-2012, services were now taxable if they were carried out by "one person" for "another person" for consideration. "Person" is very widely defined by Section 65B(37) as including individuals as well as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gether in the form of an association also, or otherwise as a group of persons who come together with some common object in mind. Whichever way it is looked at, what is important is that the expression "body of persons" cannot possibly include within it bodies corporate. 84. We are therefore of the view that the Jharkhand High Court and the Gujarat High Court are correct in their view of the law in following Young Men's Indian Association (supra). We are also of the view that from 2005 onwards, the Finance Act of 1994 does not purport to levy Service Tax on members' clubs in the incorporated form. 85. The appeals of the Revenue are, therefore dismissed. Writ Petition (Civil) No. 321 of 2017 is allowed in terms of prayer (i) therein. Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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