2017 (12) TMI 1537

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....llant Shri C. Saravanan, Advocate for the Respondent Per Bench The above appeal is filed by the department aggrieved by the order passed by the Commissioner (Appeals) who set aside the demand, interest and penalties. 2. On behalf of Revenue, ld. AR Shri S. Govindarajan reiterated the grounds of appeal. He submitted that the respondents are engaged in providing membership of club or ass....

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....axable and therefore set aside the demand. He submitted that in terms of clause (25)(a) of section 65 of Finance Act, 1994, club or association means any person or body of persons providing services, facilities or advantages for a subscription or any other kind of its members but does not include the persons, body established as provided under sub-clauses (i) to (iv) of the said Finance Act. Thus,....

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....epartment is that the respondents are liable to pay service tax on the subscription amount collected from its members. The Hon ble High Court of Jharkhand in the case of Ranchi Club Ltd. (supra) had analyzed the issue and held that the club is formed on the principle of mutuality and therefore any transaction of the club with its members is not a transaction between two parties and therefore not s....