TaxTMI 
TaxTMI 
2023 (9) TMI 815
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....ration Act, 1946 and Indian Companies Act, 1956; the appellants are registered as a service tax assessee under the category of "Business Exhibition Services", "Sponsorship Services", "Renting of Immovable Property Service" and "Scientific and Technical Consultancy Services". On scrutiny of the documents and financial statements of the appellants, Department issued a show-cause notice dated 23.03.2010 to the appellants demanding service tax of Rs.10,73,258/- under the Head "Club or Association Service" on the membership collected; Rs.1,32,89,297/- under the Head "Club or Association Service" for charging fees from members for attending the functions; Rs.76,57,325/- under the Head "Business Exhibition Service" on the basis of difference betwe....
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....23-TIOL-125-SC-ST held that adjudication on the basis of show-cause notice should be made only on the basis of classification stated in the show-cause notice. 4. Adverting to the demand confirmed under "Business Exhibition Service", learned Counsel submits that the income was inclusive of various Heads like sale of goods during seminar, workshop and conferences, advertising income and sponsorship income; such income cannot form income for any service; the said income also included income from advertisement which cannot be taxed under the Head "Business Exhibition Service". He submits that sponsorship collected is not liable to service tax under forward charge mechanism as the service tax is to be paid by these sponsors under Reverse Char....
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....e to a considered opinion on the issues raised. 8. Heard both sides and perused the records of the case. Brief issues that demands our consideration are (i) whether the membership fee collected by the appellants is exigible to service tax under "Club or Association Service" (ii) whether a demand raised under the wrong Head can be confirmed for the reason that it is taxable to duty under one Head or the other and (iii) whether a demand confirmed on the basis of difference in the figures between ST-3 Returns and balance sheets. 9. Coming to the first issue, we find that the issue is no longer res integra having been decided by a number of judgments. Hon'ble Apex Court laid down the principle in the case of Calcutta Club (supra) and re-a....
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....of persons" cannot possibly include within it bodies corporate. 84. We are therefore of the view that the Jharkhand High Court and the Gujarat High Court are correct in their view of the law in following Young Men's Indian Association (supra). We are also of the view that from 2005 onwards, the Finance Act of 1994 does not purport to levy Service Tax on members' clubs in the incorporated form. 10. Coming to the second issue, as to whether demand raised under one Head can be confirmed under a different Head, we find that learned Commissioner finds that "even otherwise, a change in classification, when a previous classification and the proposed classification are both taxable services, such a change would not effect the taxability....
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....er hardware as well as software under the annual maintenance contract was covered by the category of "Management, Maintenance or Repair" services which was defined under Section 65(64) of the Finance Act. Thus, the classification mentioned in the first show cause notice was completely erroneous. Therefore, CESTAT was right in holding that the first show cause notice was illegal. Elementary principles of natural justice required that the adjudication on the basis of show cause notice should be made only on the basis of classification stated in the show cause notice. Assessee cannot be subjected to a penalty on the basis of a show cause notice containing a completely erroneous category of service. Therefore, the demand made on the basis of th....
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.... or Balance Sheet are not liable for Service Tax. In view of these judgments, the appellant succeeds on this ground also. The impugned order is set aside and the appeal is allowed. 12. We also find that Tribunal in the case of Indian Oil Corporation- 2020 (32) GSTL 350 (Tri. Kolkata) held that: 8. Having heard both the sides, we are of the view that the entire operation of transportation of the crude from Haldia port to BRPL is covered by a single contract. The terminal facilities are only intermediate operation of the transportation of the goods through pipeline. Since, the requisite amount of the service tax has already been paid on the service of transportation through pipeline provided by the respective parties, we feel that....