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2023 (10) TMI 809 - AT - Service TaxDoctrine of mutuality of interest - Manpower Supply service - appellant is an association of the persons/firms providing stevedore services in Visakhapatnam Port to its members - Invocation of extended period of limitation - HELD THAT:- The Association has been formed for the mutual benefit of its member, who are stevedores operating in the Visakhapatnam Port Area and therefore the service provided by the Association to its member cannot be treated as transaction between two different persons in order to attract levy of Service tax, during the material period. This issue is no longer res integra as per the decision of the Hon’ble Supreme court in the case of STATE OF WEST BENGAL & ORS. VERSUS CALCUTTA CLUB LIMITED AND CHIEF COMMISSIONER OF CENTRAL EXCISE AND SERVICE & ORS. VERSUS M/S. RANCHI CLUB LTD. [2019 (10) TMI 160 - SUPREME COURT], wherein in paras 71 to 73, it was held It is, thus, clear that companies and cooperative societies which are registered under the respective Acts, can certainly be said to be constituted under those Acts. This being the case, we accept the argument on behalf of the respondents that incorporated clubs or associations or prior to 1st July, 2012 were not included in the Service Tax net. Admittedly the Appellant Association has been formed by the persons engaged in stevedoring and dock activities. In the very aims and objects, it is mentioned that as the members have been facing difficulties due to renting, behaviour of the labourers and collective bargaining as well as illegal strikes which each individual person engaged in stevedoring is unable to handle at its individual level. Accordingly, feeling the need for a collective concern to deal with workmen or labourers, the people engaged in stevedoring business formed this Association and registered themselves under the Societies Registration Act, 1860 - There is element of mutuality between the Appellant Association and its Members who have formed the Association and subscribed to its capital and also pay annual subscription charges for administrative expenses. Though the Appellant Association is providing the services of Manpower Supply to its members, the same is not taxable on the ground of mutuality. Invocation of extended period of limitation - HELD THAT:- The ground of limitation is left open. The demand under Club or Association service is not tenable and thereby set aside - Appeal allowed.
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