TaxTMI 
TaxTMI 
2026 (1) TMI 651
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....ainst appellant is sustainable and whether Appellant is liable to pay service tax considering the threshold limit. 2. Appellant is a cooperative society providing various services to its members. Since the activities of the appellant was not subject to service tax, service tax registration is not obtained. However, registered with the Department under the category of GTA services. Alleging that the activities carried out by the Appellant is falling under the category of Banking and Other Financial Services provided by a banking company or financial institutions, proceedings were initiated and show cause notice dated 20.04.2013 was issued for the period from 01.04.2012 to 31.03.2013 demanding service tax under the category of Banking and ....
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....ainable following the ratio of the judgment of the Hon'ble Supreme Court in the matter of State of West Bengal Vs. Kolkata Club Ltd - 2019 (29) GSTL 545 (SC), where doctrine of mutuality was considered and it is categorically held that if the services are provided to members, applying the ratio of doctrine of mutuality, no service tax can be demanded. Relevant paragraphs are reproduced below:- "73. It is, thus, clear that companies and cooperative societies which are registered under the respective Acts, can certainly be said to be constituted under those Acts. This being the case, we accept the argument on behalf of the respondent that incorporated clubs or associations or prior to 1st July, 2012 were not included in the Service T....
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....lanation. - For the purposes of this section, taxable service includes any taxable service provided or to be provided by any unincorporated association or body of persons to a member thereof, for cash, deferred payment or any other valuable consideration." 79. It will be noticed that the aforesaid explanation is in substantially the same terms as Article 366(29A)(e) of the Constitution of India. Earlier in this judgment qua Sales Tax, we have already held that the expression "body of persons" will not include an incorporated company, nor will it include any other form of incorporation including an incorporated cooperative society. 80. It will be noticed that "club or association" was earlier defined under Sections 65(25a) ....
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.... own members is undisputed. In placing reliance on the judgment of the Hon'ble High Court of Gujarat in the case of Green Environment Services Co-op. Soc. Ltd. (supra), which lays down a ratio in respect of the tax liability on the members of the Society, demand was set aside. The Learned Chartered Accountant (CA) also draw our attention to the decision of the Tribunal in the matter of Rajasthan Co-operative Dairy Federation Ltd Vs. CCE, Jaipur (2022 (65) GSTL 350 (Tri. Del) which was upheld by the Hon'ble Supreme Court in (2022 (65) GSTL 257 (SC). Thus, the entire demand against appellant under Banking and Financial Services is unsustainable. 6. As regarding demand under RCM, Learned Chartered Accountant (CA) submits that service tax li....
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....y. Only if both the conditions are satisfied, then the recipient of the service is liable to pay service tax on the expenses incurred by him. The "support service" is defined in Section 65B(49) as under: (49) "support services" means infrastructural, operational, administrative, logistic, marketing or any other support of any kind comprising functions that entities carry out in ordinary course of operations themselves but may obtain as services by outsourcing from others for any reason whatsoever and shall include advertisement and promotion, construction or works contract, renting of immovable property, security, testing and analysis;" 7. In the instant case, the impugned service is statutory requirement carried out by the sale....