2010 (10) TMI 460

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....0-12-2008. Since the issue in these appeals are the same and in respect of the very same assessee, we dispose off both the appeals by a common order. 2. The relevant facts that arise for consideration are that the appellant herein is engaged in providing various taxable services and is registered under the category of "Club or Association Services" & "Health Club and Fitness Centre" and is discharging service tax liabilities. On gathering intelligence that the appellant was not discharging the correct service tax liability on the membership fees collected by them, an investigation was carried out and Sr. Manager of the appellant was questioned and his statement was recorded. On conclusion of the investigation, it was noticed by the ....

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....er concern M/s. Amrutha Estates who owned the land. It is his submission that para 19 of the Order-in-Original clearly admits that it is cost of land and it is his submission that the ld. Commissioner's reliance on the Hon'ble Supreme Court's judgment in the case of CIT v. Bankipur Club Ltd. is misplaced, as it is in respect of an issue under Income Tax Act. It is also his submission that the reliance placed by the ld. Adjudicating Authority on the decision of a Coordinate Bench of the Tribunal in the case of Sterling Holiday Resorts (I) Ltd. v. CCE [2008 (12) S.T.R. 294 (Tri.-Chennai)] is also misplaced, as it is in respect of a time sharing and not in respect of sale of land. It is his submission that the appellant is clearly covered by t....

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....ions made at length by both sides and perused the records. 6. We find that the issue that arises for determination in this case is whether the entire membership fee (with land) collected by the assessee would be chargeable to service tax, irrespective of the fact that part of the membership fee relates to cost of land. 7. It is undisputed that the appellant is offering a category of membership which is called "Membership (with land)" and charging a membership fee which includes the cost of the land. It is also undisputed that those individuals who had applied for the membership with land paying the membership fee were to be allotted land by their sister concern M/s. Amrutha Estates. It is seen form the records that the appel....