Home Case Index All Cases Service Tax Service Tax + HC Service Tax - 2020 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (2) TMI 119 - HC - Service TaxInterpretation of statute - members' clubs - Club or Association service - body of persons - HELD THAT:- The expression “body of persons” occurring in the explanation to Section 65 and occurring in Section 65(25a) and (25aa) does not refer to an incorporated company or an incorporated cooperative society. As the same expression has been used in Explanation 3 post-2012 (as opposed to the wide definition of “person” contained in Section 65B(37)), it may be assumed that the legislature has continued with the pre-2012 scheme of not taxing members' clubs when they are in the incorporated form. The expression “body of persons” may subsume within it persons who come together for a common purpose, but cannot possibly include a company or a registered cooperative society. Thus, Explanation 3(a) to Section 65B(44) does not apply to members' clubs which are incorporated. From 2005 onwards, the Finance Act of 1994 does not purport to levy service tax on members' clubs in the incorporated form. Petition allowed - decided in favor of petitioner.
|