TaxTMI 
TaxTMI 
2025 (3) TMI 1245
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.... of service tax on various services. The Commissioner in the impugned order confirmed the demands and also invoked the extended period of limitation imposing equivalent duty amount of penalty under Section 78 and also imposed penalty under Section 76 and 77 of the Finance Act. Aggrieved by the above orders, the appellant is in appeal before us. 3. The Learned Counsel submits that the Appellant is a club in existence since 1868 and is an association of persons having its own memorandum and by-laws and run by duly elected general committee as per the by-laws framed for the purpose. The club is totally run on the basis of principle of mutuality for the benefit of its members and is a mutual association of persons formed for engaging in providing club facilities to its members and discharge service tax under various categories wherever applicable. The Apex Court in State of West Bengal Vs Calcutta Club Ltd: 2019-TIOL-449-SC-ST-LB, dated 3.10.2019 held that there can be no service by club to its members, as there is identity of interest in the case of a members-club, which is run on the principles of mutuality and considering the Doctrine of Mutuality applicable to clubs whether inco....
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....y, coverage charges are received for non-availment/usage of club facilities and are also in the nature of penalty, which would not attract tax. Banquet cancellation charges are also not liable to tax as there is no provision of any service. The amounts collected from cultural programs/entertainment activities were a subject matter of entertainment tax levied under the State List in the 7th Schedule to the Constitution and hence, cannot be subjected to service tax. Further, the amounts collected towards provision of chamber is for providing rooms to members, which cannot be taxed under 'Club or Association service' as 'renting of immovable property' service head in the Finance Act, 1994 specifically excluded accommodation; and 'short term accommodation service' became taxable only w.e.f. 1.5.2011 subject to exemption under Notification No.31/2011-ST, dt.25.4.2011 and abatement under Notification No.1/2006-ST, dt.1.3.2006 (Sl. No.14). Relies on TRU Circular No. DOF No.334/3/2011-TRU, dt.28.2.2011 and the Tribunal's decision in British Airways PLC India Branch vs. CST: 2018 (10) GSTL 561 (T) and Eagleton the Golf Resort vs. CCE & CST: 2019-TIOL-36-CESTAT-BANG. 3.4 It is submitted t....
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....so relied on the decision in the case of Century Club Vs. Commissioner of Service Tax, Bangalore: 2010 (17) STR 337 (Kar.) and Commissioner of C.Ex. and S.T. Dehradun Vs. Patanjali Yogpeeth Trust: 2021 (52) GSTL 592 (S.C.). 5. Heard both sides and perused the records. The issues to be decided are whether service tax is liable to be paid on club membership fee/entrance fee and other services such as health club and fitness facilities, business auxiliary service etc., 6. The issue regarding club membership fee is no longer res integra in as much as the issue stands settled in favour of the appellant in their own case by this Tribunal vide Final Order No. 21721/2018 dated 12.11.2018. The issue is also stand settled by the Hon'ble Supreme Court in the case of STATE OF WEST BENGAL Vs. CALCUTTA CLUB LIMITED 2019 (29) G.S.T.L. 545 (S.C.) dated 03.10.2019, wherein the apex court has observed as follows: "76. What has been stated in the present judgment so far as Sales Tax is concerned applies on all fours to Service Tax; as, if the doctrine of agency, trust and mutuality is to be applied qua members' clubs, there has to be an activity carried out by one person for another fo....
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....n association of persons or bodies of individuals, whether incorporated or not", uses the expression "a body of persons" when juxtaposed with "an unincorporated association". 82. We have already seen how the expression "body of persons" occurring in the explanation to Section 65 and occurring in Sections 65(25a) and (25aa) does not refer to an incorporated company or an incorporated cooperative society. As the same expression has been used in Explanation 3 post-2012 [as opposed to the wide definition of "person" contained in Section 65B(37)], it may be assumed that the Legislature has continued with the pre-2012 scheme of not taxing members' clubs when they are in the incorporated form. The expression "body of persons" may subsume within it persons who come together for a common purpose, but cannot possibly include a company or a registered cooperative society. Thus, Explanation 3(a) to Section 65B(44) does not apply to members' clubs which are incorporated. 83. The expression "unincorporated associations" would include persons who join together in some common purpose or common action - see CIT, Bombay North, Kutch and Saurashtra, Ahmedabad v. Indira Balkrishna, (....
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....frastructure support to the business or commerce being done by various entities to promote / sell their products in their premises of their club and hence this activity is clearly classifiable under the category of 'Business Support Service'. It is further observed that the appellant has received huge amounts from various entities like M/s. Balajee Hotels and Real Estates, M/s. Bangalore Cold Storage, M/s. Life Style Services Pvt. Ltd. for providing infrastructural facilities to these organisations, which is rightly classifiable under 'Business Support Services'. Since these services are in the nature of Business Support Services and they are not meant for the club members but various outside organizations, we find that the Commissioner has rightly confirmed these demands. 10. With regard to the commission received from UTI Bank towards the credit cards swiping charges, the learned Commissioner observed that "the assessee has allowed to utilize the UTI bank credit card facility is enough to say that he is providing the services to the customers of UTI and thereby earning commission for the services provided. The commission earned by providing services to the clients of an entity....