TaxTMI 
TaxTMI 
2017 (4) TMI 1227
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....lant. Ms. Neha Garg, Authorized Representative (DR) - for the Respondent. Per. S.K. Mohanty :- Brief facts of the case are that the appellant is registered with the service tax department for providing the taxable service under the category of "club or association services". The appellant regularly paid service tax on the membership/entrance fees collected from the members and deposited the sa....
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.... imposed under Section 76 and 78 of the Finance Act, 1994. 2. The learned Consultant appearing for the appellant submits that the amount received against "building fund" has no nexus with any service provided by the appellant as a club towards its members since payment of donation is not compulsory. It is voluntary payment by the members, not for deriving any additional facility on account of suc....
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....for construction of the building. Since the donation amount does not present any additional facilities or relating to the membership in the club, the same has no nexus with the taxable service provided by the appellant. Appreciating the facts involved in the case, the learned Adjudicating Authority has dropped the proposals made in the show cause notice by recording the following observations :- ....
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....4. We are in agreement with the above view and as such the service tax demand on the donation amount cannot be sustained. 5. We find that the appellant is not contesting the case on merit with regard to payment of service tax on the membership/entrance fees collected from its members for the reason that the appellant had already collected the service tax for such service from its customers and de....