https://www.taxtmi.com/caselaws?id=772651 CESTAT Kolkata allowed the appeal of an incorporated public limited company challenging service tax demands totaling Rs. 63,95,366 for restaurant services, rental services to a third party operator, and advertising services for 2008-2013. The tribunal held that restaurant services provided exclusively to club members fall under mutuality principle and are not liable for service tax, following SC precedent in Calcutta Club Limited. The arrangement with third party restaurant operator was deemed not a lease but a revenue-sharing agreement, exempting it from rental service tax. Advertising services within club premises were also held non-taxable. The tribunal found no suppression of facts as the company maintained proper records and held bonafide belief based on favorable HC decisions. All major demands were set aside except uncontested rental charges to other parties, with refund claims rejected for limitation. en-us Tue, 10 Jun 2025 00:00:00 +0530 Wed, 11 Jun 2025 10:04:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=772651 CESTAT Kolkata allowed the appeal of an incorporated public limited company challenging service tax demands totaling Rs. 63,95,366 for restaurant services, rental services to a third party operator, and advertising services for 2008-2013. The tribunal held that restaurant services provided exclusively to club members fall under mutuality principle and are not liable for service tax, following SC precedent in Calcutta Club Limited. The arrangement with third party restaurant operator was deemed not a lease but a revenue-sharing agreement, exempting it from rental service tax. Advertising services within club premises were also held non-taxable. The tribunal found no suppression of facts as the company maintained proper records and held bonafide belief based on favorable HC decisions. All major demands were set aside except uncontested rental charges to other parties, with refund claims rejected for limitation. Case-Laws Service Tax Tue, 10 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=772651