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2014 (10) TMI 929 - Commission - Service TaxTaxability - Club’s or Association’s Membership Services - Supply of Tangible Goods Service - Business Auxiliary Services - Renting of immovable property - maintainability of application - Held that: - recent amendments of Section 32E(1)(a) brought out in the Finance Act, 2014, pursuant to which the Bench records that the circumstances under which they filed the returns with late fee is accepted as compliance of Section 32E(1)(a) of CEA, 1944 and therefore allows the application to be proceeded with for settlement. Club’s or Association’s Membership Services - ‘donation’ was collected prior to the donors becoming members of the Sangam or even thereafter. However, this ‘donation’ was voluntary and not mandatory or compulsory for either to become the member of the Sangam or to avail the services provided by Sangam - Held that: - the donation collected during the impugned period was not liable for Service Tax and therefore the Service Tax amount of ₹ 39,20,973/- demanded in the SCN on account of donations collected does not survive. The Bench, however holds that the donation of ₹ 5/- collected for allowing the entry of vehicles to pick-up cement loads and ‘subscription’ collected from members are liable for Service Tax. Supply of Tangible Goods Service - Held that: - the nature of activity involved in transportation of petroleum products from the oil companies to the respective destinations by the applicant in their tanker trucks gets covered within the scope of GTA service also gets support from the fact that the same has been accepted by the respective Jurisdictional authority and assessed to Service Tax on IOCL and they complied with payment of the Service Tax under Reverse Charge Mechanism and filed periodic ST-3 returns. Moreover, if the Service Tax on the Supply of Tangible Goods Service is paid the same would be available as CENVAT Credit for payment of Service Tax on GTA service, thereby making the exercise revenue neutral - the entire Service Tax of ₹ 20,77,448/- demanded on this activity in the impugned Show Cause Notice is in-fructuous and not sustainable in law. Business Auxiliary Services - Held that: - the applicant is liable to pay Service Tax under the category BAS as reworked in respect of IRCTC commission, cell prepaid commission, railway booking commission and incentives for petrol card sales. The other receipts namely turnover discount, dealer commission, reimbursement of expenses by IOC, etc., are not liable for Service Tax as the same is related to their trading activities. Renting of immovable property - Held that: - the applicant has received rental from immovable property of ₹ 9,45,000/- for the year 2008-09, ₹ 10,80,000/- for the year 2009-10, ₹ 16,98,750/- for the year 2010-11 and ₹ 23,16,950/- for the year 2011-12 - the applicant is liable to pay Service Tax on the value by adding with such value of other such taxable service by allowing the threshold exemption limit - the demand of ₹ 4,18,405/- on the rental value of the vacant land is unsustainable in law, and is set aside. The interest payable should be worked out by the applicant to the satisfaction of the jurisdictional Commissioner. The Bench imposes a penalty of ₹ 50,000/- on the applicant under the provisions invoked in the show cause notice and grants immunity in excess of the penalty indicated herein. The applicant is granted immunity from prosecution under Section 32K of Central Excise Act, 1944, as made applicable to Service Tax vide Section 83 of the Finance Act, 1994. Application disposed off.
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