2024 (6) TMI 1471

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....4/- to the Appellant during April 2012 to June 2012 towards rent for carrying out outdoor catering business in the Club premises and that the amount so received as rent was liable to service tax under the renting of immovable property service. Accordingly, a show cause notice dtd. 08.09.2017 was issued to the appellant and in adjudication vide order-in-original dtd. 11.01.2018, service tax demand of Rs. 4,91,922/- was confirmed alogn with interest. An equal penalty was imposed under Section 78 of the Finance Act, 1994 and penalty of Rs. 10,000/- was imposed under Section 77 of the Finance Act, 1994. Being aggrieved with the impugned order, appellant filed appeal before the Commissioner (Appeals), who vide impugned order-in-appeal dtd. 26.03....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nto agreement with M/s. Swagat Caterers Pvt. Ltd. to operate restaurant jointly inside premises of the club. The club provide all facilities like air conditioning, electrical installation, music systems, light and other fittings, crockery, cutlery, service ware, linen, kitchen utensils and banqueting materials. The Swagat Caterers Pvt .Ltd. is allowed to utilize all these facilities. The club retained certain amount towards water, electricity, maintenance, etc. work. Facilities of food and beverages are provided by M/s Swagat Caterers Pvt. Ltd. for the members and their guests. In impugned matter it is on record and also it is clear from agreement that Appellant has provided the premises for arrangement of supply of Foods and Beverages to C....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mbers only. There is no dispute that the appellant is member's club and the amount received from members is not provisions of service. The club was established by mutual consent for a common purpose and for the benefit of members and hence applying the principle of mutuality there cannot be liability to Service tax as there is no service by one person to another. This view was affirmed by the Hon'ble Supreme Court in the appellant own case reported at 2019-TIOL-449-ST-LB. 6. Further, the intention of the appellant for carrying out any activity is required to be seen while deciding the tax implications on the same. The activity carried out by the appellant club is not of commercial nature as it is carried out only for the benefits of its ....