Appeal allowed with no costs. Consideration for services to non-members pre-amendment deemed non-taxable. Legal precedent applied.

The appeal was allowed, and there was no order as to costs. The judgment clarified that the consideration received by the appellant for services provided to non-members before the amendment to Section 65(25a) was deemed non-taxable during the relevant period. The decision was based on the applicability of the legal provisions and precedents set by previous tribunal decisions, ultimately resulting in the confirmation that there was no service tax liability for the period in question.

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Issues:
1. Confirmation of service tax for the period 2008-09 to 2009-10 alleging the provision of Club or Association Service.
2. Taxability of membership fee and other receipts from members and non-members utilizing services.
3. Applicability of the amended definition of taxable service to services provided to non-members.
4. Taxability of services provided to members before the amendment of Section 65(25a).

Analysis:

1. The appeal was filed against the order passed by the Commissioner (Appeals), Customs and Central Excise, Jaipur-II, rejecting the appellant's appeal. The primary assessment order confirmed the service tax for the period 2008-09 to 2009-10, alleging the provision of Club or Association Service by the appellant. The proceedings were initiated through a show cause notice against the appellant, culminating in the impugned order confirming a service tax demand of Rs. 7,60,451/- along with interest and penalties.

2. The consideration for the levy was based on membership fees and other receipts from both members and non-members utilizing the services provided by the appellant. It was noted that services provided to non-members became taxable only from 01.05.2011 following an amendment to Section 65(25a) of the Finance Act, 1994, which brought service provided to non-members within the scope of taxable services.

3. Regarding services provided to the appellant's members, the issue was found to be covered by a previous decision of the Tribunal in Federation of Indian Chambers of Commerce & Industry vs. CST, Delhi. Since the period in question predates the amendment to Section 65(25a), the consideration received by the appellant for services provided to non-members was deemed non-taxable during the relevant period.

4. Considering the above reasons, the appeal was allowed, and it was decided that there would be no order as to costs. The judgment provided clarity on the taxability of services provided by the appellant to both members and non-members, taking into account the relevant legal provisions and precedents set by previous tribunal decisions.

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