TaxTMI 
TaxTMI 
2025 (3) TMI 968
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Association Service. The Appellant being an association registered under the Travancore Cochin Literacy, Scientific and Charitable Societies (Registration) Act, 1955 would be an association established or constituted by or under any law for time being enforced. Alleging that the Appellant failed to pay service tax for such services, proceedings were initiated, and Adjudication Authority as per Order-in-Original No. 18/2009-ST dated 12/05/2009 held that the appellant is liable to pay service tax and also imposed penalty under different provision of law. Agreed by said order, present appeal is filed. 3. When the matter came up for hearing, learned counsel for the appellant submits that the exhibition/property shows are conducted for promotion of sale of flats and apartment built by members of the appellant association. Thus, it is a self-service and no service to any other person to fall under the category of taxable service as per section 65 (105) read with section 99 of the Finance Act, 1994. To demands service tax, there must be two persons, one being the provider of service and the other being the recipient of service. The learned counsel also draw our attention to the judgment....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f agriculture, horticulture or animal husbandry, or (iii) any person or body of persons engaged in any activity having objectives which are in the nature of public service and are of a charitable, religious or political nature, or (iv) any person or body of persons associated with press or media. ........ 72. The definition of "club or association" contained in Section 65(25a) makes it plain that any person or body of persons providing services for a subscription or any other amount to its members would be within the tax net. However, what is of importance is that anybody "established or constituted" by or under any law for the time being in force, is not included. Shri Dhruv Agarwal laid great emphasis on the judgments in DALCO Engineering Private Limited v. Satish Prabhakar Padhye and Ors. Etc., (2010) 4 SCC 378 (in particular paragraphs 10, 14 and 32 thereof) and CIT, Kanpur and Anr. v. Canara Bank, (2018) 9SCC 322 (in particular paragraphs 12 and 17 therein), to the effect that a company incorporated under the Companies Act cannot be said to be "established" by that Act. What is missed, however, is the fact that a Company incorporated under the Companies Act or a coop....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... constituted under those Acts. This being the case, we accept the argument on behalf of the respondents that incorporated clubs or associations or prior to 1st July, 2012 were not included in the Service Tax net." 4. Since it is an accepted fact that the business exhibition is done for the benefit of the members of the association, the above decision is squarely applicable, and no levy of tax can be made on business exhibitions conducted by the appellant for its members. 5. As regarding demand of intellectual property service, as per the impugned order, the adjudication authority confirmed levy of service tax under intellectual property service on the ground that appellant received income based on memorandum of undertaking executed between the appellant and M/s. Impressario Event Marketing Company private limited. In this regard, Learned counsel draw our attention to the memorandum of understanding entered between the appellant and M/s. Impressario Event Marketing Company private limited, where it is categorically held that M/s. Impressario Event Marketing Company private limited shall pay an amount of Rs. 16 lakhs towards the purchase of rights for conducting property show for t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....iii. Intellectual property rights which are not covered by India law like integrated circuits or undisclosed information would therefore not be covered under the taxable services. iv. Service provider must do one of the following: (a) Transfer of intangible property to another person. (b) Permit the use or enjoyment of the intellectual right 7. As regarding the amount collected from the members, Ld Counsel for the Appellant submits that the said demand is also unsustainable as per the judgment of the Hon'ble Supreme Court in the matter of State of West Bengal Vs. Calcutta club Ltd., (Supra). 8. Learned Authorised Representative (AR) reiterated the finding in the opinion order and submits that since there is an exhibition conducted by the appellant, they are liable to pay service tax as confirmed by the adjudication authority. As regarding service tax demand on the other services, the Learned AR reiterated the finding in the impugned order. 9. Heard both sides and perused the records. 10. Regarding the demand of service tax as applicable to exhibition conducted by the appellant, as per the impugned order, it is specifically stated that; "36. The next issue to be examined....