2015 (3) TMI 700

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....re are number of appeals, issue involved in all the appeals is same and all the appellants are different branches of the same society namely Karavali Credit Cooperative Society Ltd. In some cases more than one order has been passed in respect of the same branch and there may be two-three appeals also. The issue involved is whether the services provided to the Member by the cooperative society registered under the Karnataka Cooperative Societies Act 1959 is liable to tax under Banking and other Financial Services or not. 2. Heard both sides. The learned counsel for the appellant submitted that with effect from 01.06.2007, the definition of banking and other financial services was amended whereby only when the service provided is to a comm....

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....an organization which was commercial motive can be registered under cooperative societies Act. He also takes us through the objectives of the cooperative society, the appellants before us to show that the objective of the society is to benefit and improve the economic condition of the members. He also submits that dividends are distributed among the members. As regards the claim of the appellants that the department cannot ask for tax on reimbursable expenses he submits that expenses recovered in the name of postage charges, notice charges, maintenances of records etc., have been recovered only to avoid payment of service tax and in reality they are all part of the services. The learned C.A. on behalf of the appellants relies upon the decis....