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2016 (6) TMI 1203 - HC - Service TaxPrinciple of mutuality - Co-operative Society - petitioner claim that the petitioner’s co-operative society bank limited activities are confined to its members whereas activities of the ordinary bank are open to the public at large. Therefore, the petitioner’s co-operative society bank limited does not fall within the purview of sub-section (10) of Section 65 of the Act - whether the co-operative society is liable to pay service tax? Held that: - the petitioner is transacting the banking affairs and the business coming within the purview of banking and other financial services and this fact finds corroboration from the Form ST-3 which has been submitted by the petitioner concern expressing the same in the category of taxable services for which return was filed - Liability to pay service tax on the Contai Co-operative Bank Limited has been clarified by the Director General of Service Tax vide Annexure P4 clarifying that the service tax is required to be paid by the co-operative banks under the bank and other financial services. The petitioner/Contai Co-operative Bank Limited is running banking and other financial services as per its object and has expressed itself in its bye-laws that wherever the word ‘society’ appears that be read as ‘Bank’. Therefore, by its own acts and deeds as depicted from the petition and reflected from the documents annexed to the writ application and also the documents annexed to the affidavit-in-opposition, this Court has no alternative but to hold that the petitioner is rendering services to its customers within the meaning of expression ‘taxable services” as defined under Section 65(105)(zm) and is liable to pay the service tax under FA notwithstanding the petitioner being registered under West Bengal Co-operative Societies Act, 1983. Petition dismissed - decided against petitioner-assessee.
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