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2019 (7) TMI 1787 - AT - Service TaxClub and Association services - amount received for corporate membership - amounts received by the Appellant prior to the introduction of the levy of service tax under Club and Association services w.e.f. 16/06/2005 - interest and penalty - HELD THAT:- The issue involved in this appeal is no more res-integra in view of the decision of the Hon’ble High Court of Rajasthan in the case of CARRIER POINT VERSUS COMMISSIONER OF CENTRAL EXCISE, JAIPUR [2018 (3) TMI 1288 - RAJASTHAN HIGH COURT] where it was held that Any payment of contract which are entered after 1-7-2003 will invite Service Tax and any contract which is concluded prior to 1-7-2003 will not invite imposition of Service Tax. In the present case also, it is not in dispute that the department has sought to tax the amounts received as corporate membership prior to 16/06/2005 on proportionate basis after the introduction of the levy of service tax on club and association services - the levy on such amounts cannot be sustained and hence the demand to that extent is set aside. Levy of service tax - Junior and NRI Membership as also on account of Corporate membership from Greaves Cotton Limited - HELD THAT:- The Appellants have already paid the service tax on the said amounts, however interest on the same has not been paid by the Appellant. Thus, interest on the said amount is payable by the Appellant for delayed payment of service tax. Penalty - HELD THAT:- The levy was itself introduced w.e.f. 16/06/2005 and the major demand itself not being sustainable, the question of invoking suppression cannot be upheld in the current case - penalty under section 78 cannot be imposed on the Appellant. The demand of service tax of ₹ 40,53,468/- along with penalty of ₹ 83,00,000/- is set aside - Interest on the amount of ₹ 1,00,577/- on amount received for Junior and NRI membership and corporate membership of Greaves Cotton limited is to be paid by the Appellant - appeal allowed in part.
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