TaxTMI 
TaxTMI 
2019 (8) TMI 1571
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....erting the taxable service under Section 65(105)(zzze) of the Finance Act, 1994. The Appellants were served with an audit memo during scrutiny of the records and documents at the time of audit at the premises of the Appellant covering the period for 2009-10 to 2011-12 on the taxability of receipt from the members under 'Minimum Billing' and the Appellant was requested to pay service tax of Rs. 1,97,741/- and further letters from Range office seeking data of minimum billing amount charged from its members for the period Oct., 2007 to Oct., 2012 which culminated to a SCN dated 22-42013 where in a demand of Rs. 5,02,565/- along with interest under Section 75 and penalty under Section 78 of the Finance Act, 1994 was proposed on the amounts coll....
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....e members but it was in the nature of penal amount to the extent of amount of services not claimed by the member in a particular year or period and since Section 65(25a), as amended by Finance Act, 2011, defined 'club or association' as "65(25a) club or association means any person or body of persons providing services, facilities or advantages, primarily to its member, for a subscription or any other amount, but does not include the following...", any sum received on account of non-provision of service cannot be made taxable in absence of any taxable service per se. The Ld. CA placed reliance on the decision of the Co-ordinate Bench of the Tribunal in Gondwana Club v. Commissioner of Customs & C. Ex., Nagpur [2016 (42) S.T.R. 895 (Tri. - M....
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....ar period by the members of the club. However from the definition of the taxable service of club and association, it is clear that there has to be services provided for subscription or any other amount whereas in the current case the amount is received for non-provision of any services by the club to its members. Hence, it is our considered view that the same cannot be made taxable for the period prior to 1-7-2012. Further as regards the period w.e.f. 1-7-2012, since the introduction of definition of service as well as declared service under Section 66E of the Finance Act, 1994, the Appellants have already paid the tax on the same, we do not find any reason to interfere on the taxability for the said period and the amount being already paid....