Service tax on club services and membership fees examined with low tax effect objection kept for hearing

Service tax on club services to members and on membership fees was examined in light of the principle of service to oneself and the earlier distinction between incorporated clubs and an unregistered institution. The matter also raised a maintainability objection based on low tax effect. Leave was granted, and the case was directed to be listed for hearing, without any substantive adjudication recorded in the text.

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Issues: Applicability of service tax on services rendered by a club to its members and on membership fee; maintainability of the appeal in view of low tax effect.

Analysis: The matter arose from a challenge to the CESTAT's view that services rendered by the club to its members were not exigible to service tax on the principle of service to oneself, while service tax on subscription fee had been upheld. The Court also noticed the respondent's submission regarding low tax effect and recorded that the controversy required consideration in light of the distinction drawn in the earlier decision concerning incorporated clubs and an unregistered institution.

Outcome: Leave was granted and the case was directed to be posted for hearing in due course.

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