2018 (8) TMI 240

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssociation service. Accordingly, the demand of Rs. 1,16,26,461 has been confirmed along with the interest and consequent penalty has been imposed. 2. The factual matrix relevant for the purpose is as :- M/s Indian Medical Association (IMA) is registered with Service Tax Commissionerate w.e.f. 05.09.2008. However, during an audit conducted by the Department under Rule 5(A) of Service Tax Rules, 1994 on 15.12.2009 it was observed that for a period from 01.04.2010 to 31.03.2012, appellant despite providing and receiving club or association service was not discharging the service tax liability on the plea of exemption on ground of it being a charitable trust. Department observed that the said exemption is not available to the appellant and a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ch, no levy of service tax as demanded is applicable upon the IMA. Relying upon the decision of the Gujarat High Court in Sports Club India Case 2013 (7) TMI 510 and decision of the Jharkhand High Court in Ranchi Club India Case 2012 (6) TMI 636, the appellant has prayed for Order under challenge to be set aside and appeal to be allowed. 6. While rebutting these arguments, it is submitted by the Ld. DR that the very objective of IMA covers the service as defined under Section 65 (25 a) and as such the appellant is liable to pay the service tax with respect to the membership fee. It is denied that they are discharging any charitable function and thus are denied to be covered under exemption of 65(25a) of the Act. With respect to membershi....