CESTAT adjudicated a service tax refund dispute involving a ...

Club Membership Services Face New Tax Liability as Mutuality Principle Shifts for Post-2012 Incorporated Clubs

April 17, 2025

Case Laws Service Tax AT

CESTAT adjudicated a service tax refund dispute involving a club's membership services. The tribunal determined that post-01.07.2012, the principle of mutuality no longer applies to incorporated clubs. While recognizing the Supreme Court's earlier interpretation in a precedent case, the tribunal held that service tax levied on club-member transactions remains valid. The key ruling mandates that any potential refund claims must undergo strict unjust enrichment scrutiny, ensuring only legitimate tax burden bearers receive reimbursement. Unrecoverable amounts shall be credited to the Consumer Welfare Fund. The revenue department's appeal was partially allowed, establishing a nuanced framework for tax treatment of club-member interactions.

View Source

← Previous Next →

CESTAT adjudicated a service tax refund dispute involving a ...

Club Membership Services Face New Tax Liability as Mutuality Principle Shifts for Post-2012 Incorporated Clubs

April 17, 2025

Case Laws Service Tax AT

You may also like:

Demand of service tax from Cooperative Society - principle of mutuality - Consultancy service - no demand - HC

Club or Association Service - Admission Fee, Membership Fee, Establishment Expenses, collected by the appellant from its members - amount retained for earning ‘carbon...

CESTAT ruled in favor of appellant regarding service tax liability on GTA services during 2008-2013. The Tribunal determined service tax liability shifted to service...

Cenvat Credit denied of service tax paid on club membership of Association - the expenses incurred on the membership of the business club is an “input service” and...

Principles of natural justice - decision was not taken by same members of AAR who have heard the case - Taxability - club and association services - principle of...

CENVAT credit - Golf Club Membership is not related to the assessee's business and therefore, they are not entitled to the CENVAT credit of service tax paid on club...

Demand of Service Tax - Reverse charge mechanism - import of services - As such it is not the liability of service recipient but the liability of service provider which...

CESTAT ruled that service tax demands on the appellant were unsustainable across multiple categories. For business exhibition services, the tribunal found that...

The appellant paid service tax under protest and filed a refund claim, which was not barred by limitation. The Supreme Court in West Bengal vs Calcutta Club Limited held...

The appellant, an industry-specific body registered under the Trade Union Act, 1926, conducted seminars and workshops for its members. The CESTAT held that the appellant...

Eligibility to make adjustment of excess service tax paid against future service tax liability - Claim of Excess service tax paid due to issuance of revised invoice -...

Club and association services - principles of mutuality - Rotary Club - contributions received from the members in the Administration Account for expending the same for...

Club or Association service - principles of mutuality - As there is no distinction between the identity of the members and the identity of the club, there is no service...

Self Adjustment of excess service tax paid with the service tax liabilities for subsequent period - Service tax amount paid at higher rate for the service tax...

Exemption from service tax - Legal services - Notary services - The court affirms that legal services provided by individual advocates or firms of advocates are exempt...

Quick Updates: