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2015 (11) TMI 1602 - AT - Service TaxLevy of tax - members’ subscription - “Club or Association service” - Held that: - On going through the factual matrix of the constitution of the association and the activities carried out by the association and also the relationship of the members of association, we find that the association was formed by the members only for the purpose of mutual benefit of the members in regard to the mining/trade of the minerals. In view of this position, we find that there is a mutuality of interest of the members and the associations, therefore the service provider and service recipient concept does not exist. The issue of judgments of the case of Sports Club of Gujarat Ltd. v. Union of India [2013 (7) TMI 510 - GUJARAT HIGH COURT] are squarely applicable in the facts of the present case, where it was held that Section 65(25a), Section 65(105) (zzze) and Section 66 as incorporated / amended to the extent that the said provisions purport to levy service tax in respect of services purportedly provided by the petitioner club to its members, to be ultra vires The demand for the period 1-7-2012 to 31-3-2013 confirmed in the impugned order is not sustainable and the same deserves to be deducted from the total demand confirmed in the impugned order, subject to verification by the Commissioner the correctness of claim of the appellant. In view of our above discussion, we hold that the demand of service tax for the period 2008-09 to June, 2012 is not sustainable in the light of the above cited judgments. Similarly the interest and penalties are also dropped. Needless to say that the service tax admittedly paid by the appellant for the period 1-7-2012 to 31-3-2013 stand maintained as the appellant is not contesting the taxability during that period. The appeal is allowed in above terms.
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