TaxTMI 
TaxTMI 
2017 (3) TMI 1294
X X X X Extracts X X X X
X X X X Extracts X X X X
....e department has raised the demand for service tax. Being aggrieved, the appellant has filed the present appeal. 3. With this background, we have heard Shri Kumar Vikram, ld. Advocate for the appellant and Shri Sanjay Jain, ld. Counsel for the Department. 4. After hearing both the parties and on perusal of record, it appears that the identical issue has come up before the Hon'ble High Court of Jharkhand vide writ Petition No. 2388 of 2007 dated 15.3.2012, where it was observed that :- "15. The question which was considered by the Hon'ble Supreme Court in the case of Joint Commercial Tax Officer, Harbour Division-II, Madras Vs. The Young Men's Indian Association reported in 1970(1) SCC 462 was that whether the supply of various preparati....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... and every shareholder is a member, no license need to be taken out if liquor is supplied only to the members. If some of the shareholders are not members or some of the members are not shareholders, that would the case of a proprietary club and would involve sale. Proprietary clubs stand on a different footing. The members are not owners of or interested in the property of the club and then the Hon'ble Supreme Court observed that above view was accepted by the various High Courts in India. The Hon'ble Supreme Court, relying upon other judgements held that members' club is only structurally a company and it did not carry on trade or business so as to attract the corporation profit tax. Therefore, in spite of specific inclusion of the club i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s received from its members cannot be said to be Income within the meaning of the Act. But, if such receipts are from sources other than the members, then still can it be said that such receipts are not taxable in the hands of the club? The answer is obvious. No exemption can be claimed in respect of such receipts on the plea of mutuality. To illustrate, a Members' Club may have income by way of interest, security, house property, capital gains and income from other sources. But such income cannot be said to be arising out of the surplus of the receipts from the members of the club. and answered the question in affirmative and questions referred were as under:- (1) Whether, on the facts and in the circumstances of the case, the Tribuna....