Custom, Excise & Service Tax Tribunal
Sobha Developers Ltd vs Commissioner Of Service Tax ... on 6 January, 2015
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH BANGALORE Application(s) Involved: ST/Stay/28145/2013 in ST/27762/2013-DB Appeal(s) Involved: ST/27762/2013-DB [Arising out of Order-In-Original No. 117/2013 dated 20/05/2013 passed by the Commissioner of Central Excise and Service Tax, LTU, Bangalore] For approval and signature: HON'BLE Mrs. ARCHANA WADHWA, JUDICIAL MEMBER HON'BLE Mr. B.S.V. MURTHY, TECHNICAL MEMBER 1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? No 2 Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? No 3 Whether Their Lordships wish to see the fair copy of the Order? Seen 4 Whether Order is to be circulated to the Departmental authorities? Yes Sobha Developers Ltd. Sobha Corporate Office, Sarjapur Marthahalli Outer Ring Road, Devarabisanahalli, Bellandur Post, Bangalore 560 103 Karnataka Appellant(s) Versus Commissioner of Service Tax Bangalore-Service Tax 1st To 5th Floor, TTMC Building, Above BMTC Bus Stand, Domlur Bangalore 560 071 Karnataka Respondent(s)
Appearance:
Mr. G. Shivadass, Advocate Lakshmi Kumaran & Sridharan World Trade Centre No.404-406, 4th Floor, South Wing Brigade Gateway Campus No.26/1, Dr. Rajkumar Road, Bangalore - 560 055 Karnataka For the Appellant Mr. S. Ila, AR For the Respondent Date of Hearing: 06/01/2015 Date of Decision: 06/01/2015 CORAM:
HON'BLE Mrs. ARCHANA WADHWA, JUDICIAL MEMBER HON'BLE Mr. B.S.V. MURTHY, TECHNICAL MEMBER Final Order No. 20039 / 2015 Per : ARCHANA WADHWA After dispensing with the condition of pre-deposit of service tax, interest and penalties, we proceed to decide the appeal itself inasmuch as the issue is covered by the decision of the Honble Jharkhand and Gujarat High Courts which stands followed by the Tribunal in another matter.
2. The issue is as to whether the services provided by a club to its members are liable to service tax under the category of Club or Association Service. Honble Jharkhand High Court as also the Gujarat High Court has held that such services provided by club cannot be taxed to service tax. The said Orders stand followed by the Tribunal in the case of M/s. Enchanted Woods Club Ltd. Vs. CCE, Ludhiana reported in [2014-TIOL-849-CESTAT-DEL]. For better appreciation we reproduce para 6 & 7 of the said Order.
6. In light of the judgment of Jharkhand High Court in Ranchi Club Ltd. vs. CCE & ST, Ranchi Zone reported in 2012 (26) S.T.R. 401 (Jhar.) = 2012-TIOL-1031-HC-JHARKHAND-ST and of the Gujarat High Court in Sports Club of Gujarat Ltd. vs. Union of India reported in 2013 (31) S.T.R. 645 (Guj.) = 2013-TIOL-528-HC-AHM-ST, both of which had followed the judgment of the Supreme Court in Joint Commercial Tax Officer, Harbour Division, II Madras vs. The Yong Mens Indian Association reported in 1970 (1) SCC 462, the position is no longer res-integra. The services provided by a club to its members is covered by the principle of mutuality and would not amount of rendition of service by one person to another and therefore would not amount to a taxable service.
7. On the aforesaid analysis, the impugned order is unsustainable and is quashed. There shall however be no order as costs. The appeal is allowed.
3. In view of the above, we find no merits in the impugned order of the authorities below. Accordingly, the impugned order is set aside and the appeal is allowed with consequential relief to the appellant. Stay petition also gets disposed of.
(Order pronounced and dictated in open court) (B.S.V. MURTHY) TECHNICAL MEMBER (ARCHANA WADHWA) JUDICIAL MEMBER iss