TaxTMI 
TaxTMI 
2018 (7) TMI 1537
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....tions qua the Membership and service tax for the amount received for leasing the cottages under Swami Sankaradev Vanprastha Ashram Scheme, for rendering the renting of immovable property service and also with respect to intellectual property service. The said demand has been confirmed vide the order under challenge. Resultantly, the present appeal. 2. We have heard both the parties. 3. It is submitted that 3 demands have been raised by the Department as follows:- S.No. Services Amount on which ST confirmed in Rs. ST after cum- tax. in Rs. 1 Club or Association Service - On Membership Donations 45,09,44,169/- 4,59,89,553/- 2 Club or Association - On Vanprastha Ashram Donations 4,56,74,500/- 43,87,283/- Total demand under club or association service 5,03,76,836/- 3 Intellectual Property Service - Income for Telecast of Programme 96,00,000/- 10,55,273/- Total 50,64,58,669/- 5,14,54,521/- Club....
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....sels and perusing the entire record, we are of the opinion: 5.1 It is the apparent fact that appellant is a Trust engaged in the activities of teaching Yoga and for research on Vedic traditions of Yoga and are registering the interested people in these activities as their members. The Department has considered the activities of the appellant under the category of Club and Association Services as defined under Section 65 (25) A of the Finance Act, 1994 and taxable under Section 65 (105) (zzze) of the Act. The decision of Sports Club of Gujarat by the Hon'ble High Court of Gujarat is actually relevant for the alleged services. The Hon'ble High Court while relying upon another decision of Commissioner of Income Tax vs. Ranchi Club Ltd. - 1992 (1) PLJR 252 (Pat. - Full Bench) has held as follows:- "18. However, learned counsel for the petitioner submits that sale and service are different. It is true that sale and service are two different and distinct transaction; the sale entails transfer of property whereas in service, there is no transfer of property. However, the basic feature common in both transaction requires existence of the two parties; in the matter of sale, the ....
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....sufficient to hold that such person become the shareholders of the appellant's Scheme but not the members of the Trust. Such members cannot be cloth with the status as that of founder members of the Trust and the element of mutuality therefore, is missing in such a relationship. The transaction with such members will be the one with some other person with no principle of mutuality involved. As such, the Trust and the member of Vanprastha Ashram Scheme become two different legal entities. Any services of club and association being provided by the appellant to such members are therefore, taxable services under Section 65 (25a) and are absolutely out of the scope of Sport Club (supra) decision. Hence we are of the opinion that The Adjudicating authority below has rightly confirmed the said demand. 9. For this particular demand, the ld. Counsel for appellant has, in addition, argued that in case this demand is opined to be the one as under Club and Association Services then also the same has wrongly been raised, as the appellant-Trust is the body constituted for doing activities having objective, which are in the nature of public service and are of charitable, religious or political....
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.... but the fact is apparent and admitted that Yoga Camps can still be attended by any member of the appellant Trust irrespective of the being the member of Vanprastha Ashram Scheme. Hence, the consideration received as lease money under this scheme by the appellant is a consideration not because of mutuality between the appellant and the members of the said scheme, as discussed above, but is purely commercial in nature. Hence, for this particular consideration the benefit of exemption for appellant being charitable in nature cannot be granted. The said consideration is taxable under 65 (25AA) of the Act and the demand therefore is held to have been rightly confirmed. Renting of Immovable Property:- 12. The same has not been contested by the appellant. Hence, the order under challenge to that effect stands confirmed. Intellectural property: 13. The moot question for deciding the demand under this head is whether the permission as given by the appellant Trust to Star News Channel to record the Yoga Camps and to telecast on their News Channel can be termed as a right to Intellectual property, which is either a trade mark or design(s) or patent(s) or any other similar intangi....