2007 (3) TMI 77

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....ompanies Act, 1956. It is being pointed out that it is a members' club inasmuch as every member is a shareholder and every shareholder is a member. This is also being pointed out that the club is open only to its members and or to members of reciprocating or associate clubs. The contention is that the recipient of services from such a members' club are not clients and no tax is attracted, since service tax is in regard to the service rendered to a client. It is also being pointed out that the very issue had come up before the Hon'ble Calcutta High Court in the cases of Saturday Club Ltd. - 2006 (3) S.T.R. 305 (Cal.) = 2005 (180) E.L.T. 437 (Cal.) and Dalhousie Institute - 2006 (3) S 311 (Cal.) = 2005 (180) E.L.T. 18 (Cal.) and the Hon'ble H....

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....uble taxation cannot be ruled out. If I explain my first query as above it will be crystal clear that if a person being an owner of the house allows another to occupy the house for the purpose of carrying out any function in that house it will not be construed as transfer of property. But if such person calls upon a third party 'mandap keeper' to construct a 'mandap' in such house then in that case such 'mandap keeper' -can be able raise bill upon the user of the premises along with the service tax. Therefore, I cannot hold it good that members' club is covered by the Finance Act, 1994 for imposition of service tax to use its space as 'mandap'. So far as the other point is concerned whether the ratio of the judgments can be acceptable herei....