TMI Blog2013 (8) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... cluding equipment leasing and hire purchase - service tax was payable on the income earned by the assessee by way of interest/finance charges in relation to the taxable service - obligation to pay membership fees alongwith service tax would be at the time of entry. Income from securitization – Held that:- Income from securitization was an independent transaction between the bank and the applicant company - income from securitization was the excess of consideration received over and above the principal amount of receivables from the members. Room rental - Held that:- It was possible that the members also paid room rentals for overstaying and booking for their guests - the assesse had not placed the details of room rentals - there was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll on limitation. 2.1 Regarding demand of tax about Rs.8.14 crores on Room Rentals, the ld. Advocate submits that these amounts were collected only from the non-members which is not taxable under "Club or Association Service". He submits that they had produced the sample invoices of room rental of non-members and Membership Rules, which were not examined by the adjudicating authority. He also submits that from 1.5.2011, service tax was levied on room rentals under Short Term Accommodation Service. 2.2. Regarding demand of tax of about Rs.10.19 crores on Interest on Instalment Sales, he submits that total amount of membership fee is payable at the time of entry. But in some cases, the membership fee is paid 60% at the first entry and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not included in the membership fees and separately collected based on usage. He further submits that telephone and fax are covered under the telecommunication services and cannot be claimed under the head of "Club or Association service" or for using "Business Auxiliary Service". 3. The Ld. AR reiterates the finding of the Commissioner. He submits that in terms of Section 65 (105) (zzze) of the Finance Act, 1994 'taxable service' means any service provided or to be provided to its members or in relation to provisions of services, facilities or advantages for a subscription or any other amount. He submits that the word "any other service" would include all the services alleged in the show cause notice. He further submits that Rule 6 (2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, obligation to pay membership fees alongwith service tax would be at the time of entry. Club is charging interest on delayed payment of membership fees. Similarly, Revenue is also deprived of tax on delayed payment of membership fees, which was liable to be paid at the time of entry. Hence, it is reasonable to pay tax on interest on instalment sales. The Ld. Advocate relied upon the case of M/s. Thermox Ltd. (supra). In that case, it has been held that demand of tax is not maintainable on merit and question of demanding tax on interest does not arise, which is not applicable in the present case. It is noted that Rule 6 (2) (iv) of Service Tax (Determination of Value) Rules, 2006 specifically excluded interest on loan, which is differe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income from securitization is an independent transaction between the bank and the applicant company. 4.2 The next issue is room rental. The applicant claimed that room rentals were collected from non-members only. The Commissioner observed that the applicant failed to produce any evidence in support of their claim. The Ld. Advocate drew the attention of the Bench to Membership Rules in respect of duration of stay by the members. We find force in the submission of the Ld. AR that it is possible that the members also paid room rentals for overstaying and booking for their guests etc. But, the applicant had not placed the details of room rentals. Thus, there is a factual dispute on this issue. 4.3 In view of the above discussion, we find ..... X X X X Extracts X X X X X X X X Extracts X X X X
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