TaxTMI 
TaxTMI 
TaxTMI 
2024 (5) TMI 521
X X X X Extracts X X X X
X X X X Extracts X X X X
....nducted an investigation against the appellant and as a result of the investigation, a Show Cause Notice dated 23.04.2010 was issued to the appellant demanding Service Tax of Rs.2,73,96,336/- on the following services: - a. Club or Association Service b. Convention Service c. Business Exhibition Service 3. The Notice was adjudicated by the Ld. Commissioner wherein he has confirmed the demand of service tax along with interest and imposed equal amount of tax as penalty. Aggrieved against the confirmation of demands vide the impugned order, the appellant has filed this appeal before the Tribunal. 4. Regarding the demand of Service Tax confirmed against the appellant under the category of "Club or Association Service", the appellant submits that they are a mutual organization and hence, no Service Tax is payable by them; to impose Service Tax liability, there must be two parties - one a service provider and other a service receiver; when service provider and service receiver are the same person, it is a 'self- service' and there is no tax on self-service. It is contended that principle of mutuality is squarely applicable in the facts and circumstances of the present ca....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ted the C.B.E.C. Circular No. 51/13/2002 dated 07.01.2003 [F.No. 178/1/2002-CX.4] wherein the scope of "Convention Service" was clarified. In the said Circular, it has been clarified that Service Tax is leviable only when such services are provided to some person "in relation to holding of a convention"; the services rendered by the appellant are in the nature of providing space, equipment, etc. to the person organizing the convention. They do not organize those conventions. The appellant submits that when they hold the conventions on their own, they do not provide any service in relation to holding of a convention. Accordingly, they submit that the demand confirmed on this count in the impugned order is not sustainable. 5.2. It is submitted that some conventions organized by the appellant are open to general public. Any person interested in the subject matter of the convention can participate in the convention by paying a "delegate fee". In this regard, the appellant contended that once a convention is open to general public, it is not a 'convention' within the meaning of "convention" under service tax law, and no demand can be raised on convention service. 5.3. The appe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rred by limitation; the Department was aware of the working of the appellant and there is no scope for suppression in the facts and circumstances of the case. They submit that the issue is of interpretation of legal provisions and hence, the extended period cannot be invoked to demand Service Tax. Accordingly, it is submitted that the demand is liable to be set aside on the ground of limitation also. 8. The Ld. Authorized Representative appearing on behalf of the respondent reiterated the findings in the impugned order. 9. Heard both sides and perused the appeal documents. 10. Our observations on the demand raised and confirmed against the appellant on the following three services are as under: 10.1 Club or Association Service: Regarding the demand of Service Tax on Club or Association Service, we observe that the service in this case has been rendered by the appellant to their members. There is no service provider and service receiver exists in this case. When the service provider and service receiver are the same person, it is a 'self- service' and there is no tax on self-service. We agree with the contention of the appellant that the principle of mutuality applicable....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f mutuality as approved by the Hon'ble Apex Court in the case of State of West Bengal v. Calcutta Club Ltd. (supra) applies. Accordingly, no Service Tax is liable to be paid on the services rendered to their own members. 11.5. We also find that this issue has been settled in appellant's own case by the Tribunal at Chandigarh in Service Tax Appeal No. 2244 of 2012 (supra). Relevant paragraphs of the said decision are reproduced: - "23. In view of the above, we are of the considered opinion that during the relevant period, the appellant cannot be termed to be a commercial concern so as to make them liable to pay service tax for providing a necessary infrastructure for conduct of the conventions. By no stretch of imagination, the appellant can be termed as a commercial concern as they are a body of the industry formed as a trust to protect the interest of industry. Therefore, notwithstanding the fact that they are collecting certain sums for providing the infrastructure for holding conventions, they cannot be termed as a commercial concern to be liable to pay service tax for this activity. Moreover, we find that the conventions organized by the appellant is open to general public a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r promoted or advertised any product or service intended for the growth of their business. Thus, we observe that the activities undertaken by them would not fall within the definition of 'Business Exhibition' as defined above. 12.3. The appellant contended that it is a settled position of law that onus of proving taxability is on the Revenue; tax has been demanded under Business Exhibition Service on the ground that "it is not sponsorship service"; the Department needs to prove that the amount has been received from some business exhibitor in relation to business exhibition service, which has not been done. We agree with the submissions made by the appellant. Accordingly, we hold that the appellant has not rendered 'Business Exhibition Service' and the demand confirmed in the impugned order on this count is not sustainable. 12.4 The appellant also submitted that the demand has been made only on the basis of the information available in their balance-sheet without giving any finding regarding the nature of the service rendered by them. They cited the decision of CESTAT, Chandigarh in their own case in Service Tax Appeal No. 2244 of 2012 (supra)wherein it has been h....