TaxTMI 
TaxTMI 
2020 (3) TMI 1156
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....vides various facilities and advantages only to its members and collects amounts from them in the form of subscriptions, tennis fee, billiards fee, games fee, gym fee, building fund, rent for roof garden etc. During the relevant period 16.06.2005 to 31.03.2009 they collected various amounts under these heads. The department was of the view that these activities fall under the definition of "Club or Association Service" as per section 65(25a) read with section 65(105)(zzze) of the Finance Act, 1994 up to 30.06.2012 and under section 65B(44) read with explanation iii(a) from 01.07.2012. Accordingly, the service tax amounting to Rs. 61,65,467/- was demanded from the appellant for the transactions between the period 16.06.2005 to 31.03.2009. ....
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....on'ble High Court of Jharkhand in the case of Ranchi Club Ltd (supra) and it was held that club is formed on the principle of mutuality and therefore if the club provides services to its members, it is not a service by one legal entity to another and is not liable to service tax. Paras 17 to 19 of this judgment are reproduced below: "17. The Full Bench of Patna High Court in the case of writ petitioner itself i.e., in the case of Commissioner of Income Tax v. Ranchi Club Limited (Supra), after finding that Ranchi Club is a limited company incorporated under the Indian Companies Act, considered the various clauses of the main objects of the club and relying upon various judgments, in paragraph 12 observed as under:- "12. Therefore, by ....
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.... its house property let to its members and their guests is not chargeable to tax? (III) Whether, on the facts and in the circumstances of the case, the Tribunal has rightly held that the income derived by the assessee-club from sale of liquor, etc., to its members and their guests is not taxable in its hands? 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 seller and buyer, and in the matter of service, ser....