Principle of mutuality bars service tax on member-only cooperative society services under Banking and Other Financial Services.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....A registered cooperative society that confined lending and deposit-related activities to its own members was held not liable to service tax under Banking and Other Financial Services. Applying the principle of mutuality, the Tribunal found that services rendered by such a society to its members do not constitute taxable services provided by one person to another. The contrary view treating the society as a commercial concern was unsustainable, and the demand of service tax and related penalties based on member-based services were set aside.....