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2019 (8) TMI 1571 - AT - Service TaxTaxability - Club and Association services - receipt from the members under ‘Minimum Billing’ for non-provision of service - extended period of limitation - HELD THAT:- In the present case, the department has sought to tax an amount received by the Appellant club for non-provision of services in a particular period by the members of the club. However from the definition of the taxable service of club and association, it is clear that there has to be services provided for subscription or any other amount whereas in the current case the amount is received for non-provision of any services by the club to its members. Hence, it is our considered view that the same cannot be made taxable for the period prior to 1-7-2012. Further as regards the period w.e.f. 1-7-2012, since the introduction of definition of service as well as declared service under Section 66E of the Finance Act, 1994, the Appellants have already paid the tax on the same, we do not find any reason to interfere on the taxability for the said period and the amount being already paid by the Appellant on this score. Extended period of limitation - HELD THAT:- The impugned SCN dated 22-4-2013 relates to the period 2007 to 2012 by invoking extended period of limitation whereas the Appellant has contended that on the similar issue for period prior to 2007, the department has already dropped the audit query on minimum billing taxability and hence the demand is also time-barred for there is no change in the law relating to club and association services during the interim period and the department cannot change its stand on the same issue already decided - Appellant had all the reasons to believe that such amounts would not be taxable under the service tax regime and hence the demand is also hit by limitation. Appeal allowed - decided in favor of appellant.
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