2018 (8) TMI 1904 - AT - Service Tax

Appellate Tribunal Overturns Service Tax Liability Decision, Grants Relief

The Appellate Tribunal CESTAT ALLAHABAD, comprising Mrs. Archana Wadhwa and Shri Anil G. Shakkwar, set aside the orders confirming Service Tax liability ... Club or Association Services - demand alongwith interest and penalties - extended period of limitation - HELD THAT:- The issue is no more res integra and stands decided by various decisions of the High Courts vide which the “Club Services” were held to be ultra vires. Reference can be made to the Hon’ble Gujarat High Court decision in the case of SPORTS CLUB OF GUJARAT LTD VERSUS UNION OF INDIA & 3 [ 2013 (7) TMI 510 - GUJARAT HIGH COURT ]. Appeal allowed - decided in favor of appellant. Issues:Confirmation of Service Tax liability under the category of 'Club or Association Services' for the appellant invoking a longer period of 2006-07 to 2010-11.Analysis:The judgment delivered by the Appellate Tribunal CESTAT ALLAHABAD, with Mrs. Archana Wadhwa and Shri Anil G. Shakkwar presiding, addressed the issue of Service Tax liability against the appellant for the period of 2006-07 to 2010-11 under the category of 'Club or Association Services.' The Tribunal noted that the Service Tax amount of Rs. 10,86,160/- was confirmed along with interest and penalty. However, both sides agreed that the issue had already been settled by various High Court decisions declaring 'Club Services' as ultra vires. Reference was made to judgments such as the Hon'ble Patna High Court decision in Commissioner of Income Tax v. Ranchi Club Ltd., the Jharkhand High Court decision in Ranchi Club Ltd. v. Chief Commissioner, and the Gujarat High Court decision in Sports Club of Gujarat Ltd. v. Union of India, all supporting the appellant's position.In light of the precedents and the settled legal position, the Tribunal concluded that the issue was no longer res integra and had been decided in favor of the appellant. Consequently, the impugned orders confirming the Service Tax liability were set aside, and the appeal was allowed with consequential relief granted to the appellants. The decision was dictated and pronounced in open court, providing a clear resolution to the appellant's challenge regarding the Service Tax liability under the category of 'Club or Association Services' for the specified period.