2019 (1) TMI 1178

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....rvice tax, as a club or association, from 30.9.2005. The office of the DGCEI initiated investigation and thereafter issued a show cause notice, dated 12.7.2007, alleging that the Appellant have collected amounts, like advance enrolment fee, subscription charges and other sums as mentioned in Annexure to the SCN, from members for the facilities provided to them, their dependents, for the period 16.2.2005 - 28.2.2007; services rendered by them are taxable under Section 65(105) (zzze) read with Section 65(25aa) of the Finance Act, 1994. Commissioner vide OIO No.38/2008 dated 11.9.2008 confirmed duty of Rs. 93,27,626 along with interest while imposing equal penalty under Section 78 and penalties under Sections 76 and 77 of the Finance Act, 1994....

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....Factories, 2017 (50) STR 271 (Guj.) (iv) Federation of Surat Textile Traders Association Vs UOI, 2017 (52) STR 478 (Guj.) Further, Gujarat High Court, in the case of Karnavati Club Ltd. vs. UOI: 2010 (20) STR 169 (Guj.) quashed the proceedings against the Petitioner relating to the applicability of service tax and held that the levy under mandap keeper category cannot apply and a club cannot become a mandap keeper- if club space is allowed to be occupied by the member/his family members/ his guests for any function. The Supreme Court has dismissed the SLP of the Government after condoning the delay, vide report in 2010 (20) STR J.44 (SC). 2.2. Ld. Counsel also submits that the impugned order is wrong in levying service tax even on ....

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....sara Co-operative Housing, 2016 (44) STR 303 (T). (xiv) Residency Club, 2016 (45) STR 448 (T). (xv) Chelmsford Club, 2016 (45) STR 512 (T) (xvi) Maharatta Chamber, 2017 (3) GSTL 233 (T). 2.3 The Appellant submits that the cover charges are collected as penalty from members not using the facilities as such non-usage deprives other members of the facility and infrastructure. Such amounts cannot be taxed at all. There is no service involved in such case and hence the levy itself fails. Staff welfare collection refers to Diwali bonus collected from members and distributed to staff, which is not towards any service to members. Green fees/course reservation is collected from non-members for usage of golf course and hence not liable un....

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.... Ld. AR for the department has reiterated the findings of OIO and submitted that the appeal filed by the Department is pending in Supreme Court. 4. Heard both sides and perused the records of the case. We find that the issue is no longer res integra in view of the decision of Gujarat High Court in the case of Sports Club of Gujarat Ltd. (supra) and that of Jharkhand High Court in the case of Ranchi Club Ltd. (supra) and other decisions of the Tribunal cited above. It has been categorically held that in view of the mutuality of interest and in view of the activities of the club, if the club provides services to its Members that would not constitute service to others. In fact, we find that Gujarat High Court has held the levy itself to be ....