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2013 (11) TMI 347 - AT - Service TaxBusiness Auxiliary Service or Club / Association service - sale of Carbon Emission Reduction (CER) Certificates - The applicant received the sale proceeds and transferred the amount to the members after retaining 5% of the sale proceeds. - Held that:- it is not a case of mere sale and purchase of the certificate between the applicant-association and the Sweden Company as per agreement. The state of affairs would show that the applicant-association on behalf of their members sold their certificates to the Sweden Company and earned 5% commission in the transaction. The submission of the learned counsel that it is an activity of the association for its members and strongly relied upon the decision of the Honble Jharkhand High Court in case of Ranchi Club Ltd. Versus Chief Commissioner of Central Excise & Service Tax [2012 (6) TMI 636 - Jharkhand High Court]. The Hon’ble High Court observed that if club provides any service to its members may be in any form, including as mandap keeper, then it is not a service by one to another in the light of the decisions of the Hon’ble Supreme Court. In our considered view, the activities of the applicant in the present case are rendering service on behalf of the members in their business, and earned commission, which would not come within the purview of normal course of activities of club or association. Prima facie assessee is liable to pay service tax - stay granted partly.
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