Custom, Excise & Service Tax Tribunal
Elcina Electronic Industries ... vs Cst, Delhi on 18 October, 2016
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
West Block No. 2, R.K. Puram, New Delhi 110 066.
Date of Hearing/Order: 18.10.2016
Appeal No. ST/2469/2012 (DB)
(Arising out of Order-in-Appeal No. 112/S.Tax/D-II/2012 dated 18.5.2012 passed by the Commissioner (Appeals), Central Excise, New Delhi)
For Approval & Signature :
Honble Ms. Archana Wadhwa, Member (Judicial)
Honble Mr. Ashok K. Arya, Member (Technical)
1.
Whether Press Reporter may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
No
2.
Whether it would 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 Department Authorities?
Yes
ELCINA Electronic Industries Association of India Appellant
Vs.
CST, Delhi Respondent
Appearance :
Shri S.K. Pahwa, Advocate - for the Appellant
Shri Sanjay Jain, A.R. - for the Respondent
CORAM: Honble Ms. Archana Wadhwa, Member (Judicial)
Honble Mr. Ashok K. Arya, Member (Technical)
Final Order No. 54542/2016
Per Archana Wadhwa:
Demand to the tune of Rs.17,44,434/- stands confirmed against the appellant under the category of club or association service along with confirmation of interest and imposition of penalties.
2. The appellant is an association of various electronic and IT industry and, prime object, is to serve the electronic hardware manufacturing industry, as per the Memorandum and Article of Association & is a non-profit organization.
3. Revenue by entertaining a view that the appellant would be liable to service tax under the category of club or association service, initiated proceedings resulted in passing of the present impugned order confirming the same.
3. Both sides agree that the issues are covered by number of decisions of the Tribunal as detailed below:
(i) Federation of Indian Chambers of Commerce & Industry Vs. CST, Delhi 2015 (38) STR 529 (Tri.-Del.).
(ii) National Association of Software & Service Co. Vs. CST, Delhi- 2015 (37) STR 1041 (Tri.-Del.)
(iii) Ranchi Club Ltd. Vs. Chief Commissioner of CE & ST, Ranchi Zone 2012 (26) STR 401 (Jhar.).
(iv) Sports Club of Gujarat Vs. UOI 2013 (31) STR 645 (Guj.).
(v) Federation of Surat Textile Traders Association Vs. UOI 2016-TIOL-459-HC-AHM-ST.
(vi) CCE & ST, Ahmedabad-III Vs. Gujarat State Federation of Co-Op. Sugar Factories Ltd. 2016-TIOL-1992-HC-AHM-ST.
(vii) Matunga Gymkhana Vs. CST, Mumbai 2015 (38) STR 407 (Tri.-Mum.).
(viii) Indian Banks Association Vs. CST, Mumbai-I 2016 (44) STR 304 (Tri.-Mum.).
Its stand held that inasmuch as the various associations work on mutuality of interest basis between them and its members it cannot be held that they were providing any services. As the issue is covered, we set aside the impugned order and allow the appeal with consequential relief to the appellant.
(Dictated & pronounced in open Court) (Archana Wadhwa) Member (Judicial) (Ashok K. Arya) Member (Technical) RM 3