TaxTMI 
TaxTMI 
2025 (6) TMI 1810
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....dering taxable services under the category of 'Club or Association Service' and 'Mandap Keeper Service' as defined under Section 65(25a) and Section 65(67) of the Finance Act, 1994. The appellants were issued two show-cause notices, one on 29.02.2008 for the period June 2005 to May 2007 for recovery of service tax amount of Rs.31,95,283/- and second one on 22.10.2008 for the period Jue 2007 to March 2008 for recovery of service tax of Rs.15,35,439/- alleging that they have failed to discharge service tax on gross amount collected by them from their clients towards 'Club or Association' and 'Mandap Keeper' service. Also, it is alleged that the appellant had not paid/discharged service tax liability of the amount collected towards Life Member....
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....nable in view of the judgment of the Hon'ble Supreme Court in the case of State of West Bengal Vs. Calcutta Club Limited [2019(29) GSTL 545 (SC)] which was later followed by this Tribunal in the case of Karnataka Golf Association Vs. Commissioner [2024(81) GSTL 415 (Tri. Bang.)]. 4. Learned AR for the Revenue reiterated the findings of the learned Commissioner(Appeals). 5. Heard both sides and perused the records. 6. The short issue involved in the present appeal for consideration is whether the facilities provided by the appellant to its members like swimming pool, tennis court, shuttle court, facilities of rooms for accommodation, etc. could be leviable to service tax under 'Club or Association Service'. We find that upholding of....
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....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) 9 SCC 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 und....
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....cation only to a firm which had been created by an instrument of partnership, and that it could reasonably and in conformity with commercial practice, be held to apply to a firm which may have come into existence earlier by an oral agreement, but the terms and conditions of the partnership have subsequently been reduced to the form of a document. If we construe the word "constitute" in the larger sense, as indicated above, the difficulty in which the Learned Chief Justice of the Calcutta High Court found himself, would be obviated inasmuch as the section would take in cases both of firms coming into existence by virtue of written documents as also those which may have initially come into existence by oral agreements, but which had subsequen....