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2018 (11) TMI 1211 - AT - Service TaxNon-payment of service tax within time - Club Or Association Service - Restaurant Service - Renting Of Immovable Property Service - non-registration - threshold exemption under Section 69 of the Act read with Rule (4) of the Service Tax Rules, etc. - penalty. Club And Association Services - Held that:- In the case on hand, the demand (of short payment) relates to the period 2008-09 (second half) to 2010-11 - the decision in the case of M/s. Handloom Export Promotion Council Vs. C.S.T., Chennai-II [2018 (8) TMI 1590 - CESTAT CHENNAI], squarely applies to the case in hand, where it was held that This Bench in M/S. COSMOPOLITAN CLUB VERSUS CCE & ST, MADURAI [2018 (2) TMI 1052 - CESTAT CHENNAI], has held that for the period up to 30.06.2012, there cannot be any service tax liability on the amounts collected by the clubs/associations from its members under various categories of members - the demand on short payment on the Club and Association Services is not sustainable. Renting of Immovable Property Services - Held that:- In the very same case of M/s. Handloom Export Promotion Council (supra), this Bench has taken a view that the same fell within the taxable category - demand with interest upheld. Restaurant Service - Held that:- This issue requires fresh adjudication in the light of the appellant’s explanation supported by its income and expenditure statement and other material documents - matter on remand. Penalty - Held that:- The issue of taxability under the Clubs and Association Services was mired in litigation and was only laid to rest by the decision of High Courts - With regard to Renting of Immovable Property Services provided by the appellants, the appellant was under a mistaken assumption that there would be no tax liability since the appellant had leased out its own premises and that there was no short payment on Restaurant Service - there was reasonable cause for the failure to discharge the impugned tax liabilities, hence impositions of penalties are unjustified - penalty set aside. Appeal allowed in part.
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