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2017 (4) TMI 35 - AT - Service TaxLiability of service tax - Business Auxiliary Service - Manpower Recruitment or Supply Agency Service - Intellectual Property Right Service - Club or Association Service - Held that: - It is by now a settled principle that the services provided by the Club or Association to its members would not amount to service provided to another - reliance placed in the case of Sports Club of Gujarat Ltd. vs. Union of India [2009 (8) TMI 667 - Gujarat HIGH COURT] - the appellants are not liable to service tax under the category of Club or Association Service - demand not sustained. Business Auxiliary Service - Held that: - It is clear from the arrangement, that the appellant is conducting periodical MAT examination. Interested students pay the fee and write the examinations. The grades obtained by the student, as certified by the appellant help the students to get admission in the management institute. It helps the management institute also in selecting the right students for their course. The appellant is not acting on behalf of anybody while conducting the MAT examination. We find there is no provision of service on behalf of any client. As such, we hold no service tax can be levied on the examination fee collected by the appellant from the students for MAT examination - demand not sustained. Manpower recruitment or supply agency service - Held that: - the appellants are collecting charges from the organizations and there is no public service involved in conducting examination for recruitment of personnel for various organizations which included commercial public sector undertakings. As such, we are of the opinion that the services rendered by the appellants are liable to be taxed under manpower recruitment or supply agency service - however, such demand has to be confirmed only for the normal period covered by both the show cause notices. As already noted, the second show cause notice also invoked extended period which is legally unsustainable - demand sustained for normal period. Intellectual Property Right Service - It is the case of the appellant that the said contents are copy right materials and, as such, are excluded from the purview of tax entry of “intellectual property right” - Held that: - the royalty payment is admittedly for providing contents for the journal. It is not relating to right to intangible property like trade market designs, patterns or any other similar intangible property. Admittedly, the contents of the journal are copy right materials and, as such, are excluded from the tax liability under IPR service - demand not sustained. Extended period of limitation - SCN dated 23/04/2009 was issued covering the period 10/09/2004 to 31/03/2008. Another SCN on the same issues was issued on 24/10/2011 covering the period 2008-2009 to 2010-2011. The second SCN also was issued invoking extended period of demand - Held that: - repeat SCN on the same issue on similar set of facts cannot be issued invoking extended period of time. Such action is not legally sustainable - penalties set aside. Appeal allowed - decided partly in favor of assessee.
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