2026 (6) TMI 449

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....missionerate, Bangalore. 2. Briefly stated the facts of the case are that as a result of the audit of the records of the appellant for the period April 2007 to March 2011, it came to the knowledge of the Department that the appellant had short paid service tax amounting to Rs.54,45,709/- for the period April 2009 to March 2011 relating to Renting of Immovable Property Services and Rs.29,22,154/- for the period 2006-2007 relating to Membership of Clubs or Association Services. Consequently, show-cause notice was issued to them on 24.04.2012 for recovery of service tax of Rs.54,45,709/- and Rs.29,22,154/- along with interest and penalty. On adjudication, the learned Commissioner dropped demand of Rs.46,59,635/- for the period 2009-2010 and....

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....ategory of Membership of Clubs or Association Services, had not paid service tax; however, from 2007 onwards they registered and discharged service tax. Since all the facts were within the knowledge of the Department, therefore demanding service tax invoking extended period of limitation is unsustainable, hence the demand confirmed against the appellant is barred by limitation. Also, a portion of the demand for the period April 2006 to September 2006 is beyond the period of 5 years. 3.2. On the issue of confirmation of demand of Rs.7,86,074/-, the learned advocate has submitted that in the impugned order, against the short payment of duty of Rs.54,45,709/-, the adjudicating authority has dropped the demand of Rs.46,59,635/- acknowledging....

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.... squarely covered by the judgment of State of West Bengal vs. Calcutta Club Limited: 2019 (29) G.S.T.L. 545 (S.C.). This Tribunal in a similar set of facts and circumstances in the case of M/s. Karnataka State Cricket Association vs. Commissioner of Service Tax, Bangalore vide Final Order No. 21048/2025 dated 21.07.2025 observed as: "9. On the issue of demand of service tax on 'club or association service', it is not in dispute that the appellant had allotted available rooms at its premises to their members on rental basis and the same was accounted for in their books of account. We find that the services rendered by the appellant to their members cannot be leviable to service tax under the club or association service as he....