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2017 (4) TMI 337 - AT - Service TaxTaxability - amount received and/or retained by assessee towards expenditure as consideration for rendering of 'club or association service' - It is the case of the tax authorities that the amount retained on account of amounts expended is a consideration received by it for rendering 'club or association service' and is, therefore, liable to tax and FA, 1994 - Held that: - this appellant is an association of persons. Doubtlessly, the members have paid a certain amount for the privilege of membership. They have likewise participated in contributing to the common expenses of the association - That members may come together for a common purpose which may involve membership fee and participation in common expenditure is an accepted reality of the existence of social man. To take it beyond that perspective to the hard reality of subjection to tax, the object of the tax law must also be fulfilled which, in relation to FA, 1994 is the rendering of a service. The impugned order has failed to convince that a service is rendered by the appellant to its members and the contributions are the quid pro quo for that service. There can be no doubt that 'copyright societies' are established under law and hence not liable to be taxed on any receipts from its members. Demand set aside - appeal dismissed - decided against Revenue.
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