Mutuality shields incorporated members' clubs from service tax; post-2012 deeming fiction did not extend the levy.

An incorporated members' club was held to remain outside the service tax net on club or association services for the post-01.07.2012 period because the principle of mutuality continued to apply. The Tribunal followed the Supreme Court's ruling and held that the post-2012 definition of service, including the deeming fiction for an unincorporated association or body of persons and its members as distinct persons, did not extend to incorporated clubs. As the tax paid was not legally due, the refund sanctioned by the original authority was upheld and the Revenue's challenge failed.

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Issues: Whether an incorporated members' club was liable to service tax on amounts collected from its members under the head of club or association services for the relevant post-2012 period, and whether refund of the tax paid was rightly sanctioned.

Analysis: The Tribunal followed the Supreme Court's ruling that incorporated clubs or associations are not hit by the levy of service tax on the basis of mutuality. The post-01.07.2012 definition of service and the deeming provision treating an unincorporated association or body of persons and its members as distinct persons did not extend the levy to incorporated members' clubs. Since the assessee was an incorporated club and the period in dispute was after 01.07.2012, the payment of service tax was not treated as legally due, and the refund sanctioned by the original authority was upheld.

Conclusion: The refund claims were allowable and the Revenue's challenge failed; the impugned appellate order was sustained.

Ratio Decidendi: Incorporated members' clubs remain outside the service tax net on the basis of mutuality unless the statute clearly brings them within the levy, and the deeming fiction applicable to unincorporated associations does not by itself tax incorporated clubs.

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