TaxTMI 
TaxTMI 
TaxTMI 
2018 (11) TMI 979
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.... 17,32,720/- already paid by them under TR challan and a sum of Rs. 6,34,936/- paid by them utilizing the CENVAT credit. The Commissioner has also confirmed demand of interest as per Section 75 of the Finance Act and also imposed penalty under Section 76 of the Finance Act and a penalty of Rs. 1000/- under Section 77 and also imposed equal penalty of Rs. 1,58,12,328/- under Section 78 and liberty also granted to the appellant to pay the reduced penalty of 25% if the tax, interest and reduced penalty are paid within 30 days. 2.1. Briefly the facts of the present case are that the appellant is an association of persons engaged in providing club facilities and are registered under the taxable service of health club and fitness center from 25/....
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....was issued a show-cause notice demanding an amount of Rs. 1,58,12,328/- being service tax payable for the period from 16/06/2005 to 28/02/2007 on 'Club or Association Membership Services' rendered by them and interest and penalties are also proposed in the show-cause notice. The appellant filed a detailed reply to the show-cause notice taking all the points raised in the show-cause notice. The main contention in the reply to the show-cause notice was that in view of the principle of mutuality, they were not liable to pay service tax under the category of „Club or Association Membership Services‟. After following the due process, the adjudicating authority i.e. Commissioner of Service Tax proceeded to pass the Order-in-Original d....
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....y of persons associated with press or media; 4.2. He further submitted that the Secretary of the club in his statement on 08/03/2007 has admitted that they have started paying service tax w.e.f. 01/05/2006 in respect of collection of monthly subscription and subscription towards badminton, billiards, cards, health club, squash, swimming pool, table tennis, tennis and library. But they have not paid service tax on membership entrance fee collected by the club as they are of the opinion that on account of the principle of mutuality of interest, the appellants are not entitled to pay the service tax on the membership entrance fees and other services rendered by the club to its members. Learned counsel further submitted that though appellants ....
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....d in 2009(13) STR 68 (Tri. Bang.) and the said decision was affirmed by the Hon'ble High Court of Karnataka which is reported in 2010(17) STR 337. He further submitted that in view of the decision of the Karnataka High Court with regard to Century Club wherein the refund claim filed by the Century Club on identical grounds was rejected by the Tribunal as well as by the High Court should be followed with regard to various services except membership entrance fee. 6. After considering the submissions of both the parties and perusal of the material on record and the various decisions relied upon by the appellant, we find that as far as entrance fees for becoming the members of the club is concerned, the issue is no more res integra and has bee....
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....on of the Karnataka High Court and the decision of the Karnataka High Court has become final. For subsequent period, the Century Club also filed refund claims and this Tribunal vide Final order No.21458- 21460/2018 dt. 25/09/2018 by relying upon the decision of the Karnataka High Court has dismissed the appeals of the Club. Here it is pertinent to reproduce the relevant findings by this Tribunal in the case of Century Club which is on identical issue. 6.1. After considering the submissions of both sides and perusal of material on record, we find that in the present case the appellant is seeking refund of service tax paid by them under mistake under the category of health club and fitness center on the ground that they are not liable to pay....