TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>High Court rules members club not liable for service tax, citing Supreme Court precedent.</h1> <h3>COMMISSIONER OF SERVICE TAX, KOLKATA & ORS. Versus THE BENGAL ROWING CLUB & ANR.</h3> The High Court of Calcutta upheld the decision that the respondent club, classified as a members club, was not liable for service tax. The court dismissed ... Levy of service tax - members club - mutuality of interest - HELD THAT:- The exact issue was before the Supreme Court in STATE OF WEST BENGAL & ORS. VERSUS CALCUTTA CLUB LIMITED AND CHIEF COMMISSIONER OF CENTRAL EXCISE AND SERVICE & ORS. VERSUS M/S. RANCHI CLUB LTD. [2019 (10) TMI 160 - SUPREME COURT] where it was held that from 2005 onwards, the Finance Act of 1994 does not purport to levy service tax on members’ clubs in the incorporated form. Petition dismissed. Issues:Whether the respondent club, being a members club, was exigible to service tax.Analysis:The High Court of Calcutta addressed the issue of whether a respondent club, classified as a members club, was liable for service tax. The court noted that a previous single judge's decision had ruled in favor of the club, stating it was not liable for service tax and granted consequential reliefs. The Commissioner of service tax appealed this decision. The High Court highlighted that the same issue had been previously considered by the Supreme Court in two cases: State of West Bengal and Others Versus Calcutta Club Limited and Chief Commissioner of Central Excise and Service and Another Versus Ranchi Club Ltd. The Supreme Court, in its judgment dated 31st October, 2019, had upheld the decision that clubs like the respondent club were not liable for service tax. The High Court, therefore, concluded that the issue was settled by the Supreme Court's judgment and affirmed the single judge's decision from 2017.The High Court dismissed the appeal (APO No.86 of 2019) brought by the Commissioner of service tax, upholding the decision that the respondent club was not liable for service tax. The court directed strict compliance with the order within four weeks of communication. Additionally, a cross-objection (OCOT No.2 of 2019) was treated and subsequently dismissed in light of the Supreme Court's precedent and the affirmed judgment of the single judge. The High Court's ruling was based on the Supreme Court's clarification on the tax liability of members clubs, providing a clear legal precedent for similar cases in the future.
TaxTMI 
TaxTMI 
