Incorporated members' clubs not liable to service tax on membership services under the Finance Act, 1994.

An incorporated members' club was held not liable to service tax on membership or association services under the Finance Act, 1994. The issue was treated as covered by the Supreme Court's Larger Bench ruling, which held that from 2005 onwards the Act does not levy service tax on incorporated members' clubs and that related demands and coercive action are void in law. Applying that principle, the impugned order was set aside.

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Issues: Whether an incorporated club is liable to service tax on membership of club or association services.

Analysis: The issue stood covered by the Larger Bench decision of the Supreme Court holding that from 2005 onwards the Finance Act, 1994 does not levy service tax on members' clubs in incorporated form, and that demands and related coercive action against such clubs are void in law.

Conclusion: The appellant, being an incorporated club, was not liable to service tax on membership of club or association services, and the impugned order was set aside.

Ratio Decidendi: Incorporated members' clubs are not subject to service tax on membership or association services under the Finance Act, 1994.

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