2016 (9) TMI 1241

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.... lies in a narrow compass. Therefore with the consent of both the parties, we have decided to dispose of the appeal itself. Briefly the facts of the present case are that the respondent M/s. National Club, Kumbanad is a club holding Registration No. P.1285/01. On the basis of intelligence that the noticee had been providing taxable service of Services by a Club or Association without paying service tax, an investigation was initiated against them. After the completion of investigation, a show-cause notice No. 36/ST/2011 dated 09.03.2011 was issued demanding service tax not paid for the period from 2005-06 to 2009-10 by the Joint Commissioner, Cochin which was confirmed along with interest and penalties under Section 76, 77 & 78 of the Finan....

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....ly in accordance with the law and there is no illegality in it. He further submitted that the judgments passed by the Hon'ble Jharkhand High Court and Hon'ble Gujarat High Court and also various judgments of the Tribunal are in favour of the respondent though the Revenue has challenged those decisions before the Hon'ble Supreme Court but there is no stay granted by the Hon'ble Supreme Court. It is pertinent to note that the Commissioner (Appeals) has allowed the appeal of the respondent by relying upon the following judgments: (i) Sports Club of Gujarat Ltd. Vs. Union of India reported in 2013 (31) S.T.R. 645 (Guj.) (ii) Ranchi Club Ltd. Vs. CCE & ST, Ranchi Zone reported in 2012 (26) S.T.R. 401 (Jhar.) (iii) Join....

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.... would be involved as the element of transfer would be completely absent, the supply of various preparations by each club to its members does not involve a transaction of sale within the meaning of Sales of Goods Act, 1930 . The Hon'ble Supreme Court held that where every member is a shareholder and every shareholder is a member, then it would be called as member s club. The supply of various preparations by each club to its members does not involve element of transfer. The Hon'ble Jharkhand High Court in Ranchi Club V CCE {2012-TIOL-(1031)-HC-Jhankhand-ST)} decided that club incorporated as Company and formed on principle of mutuality  in view of mutuality, if club provides any service to its members, it is not a service by one legal ....