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2023 (10) TMI 1116 - AT - Service TaxLevy of Service Tax - Club and association service - mutuality of interest - advance entrance/admission fee collected by the appellant from the applicants - period from April 2012 to June 2012 - amended scheme of Service Tax from July 2012 to March 2014 - scope of service - HELD THAT:- Though in the show-cause notice dated 22.5.2014, the applicability of definition of ‘service’ has not been raised, however, in the show-cause notice dated 10.4.2015 it is alleged that the advances collected by the appellant would fall under the scope of ‘service’ as defined under Section 65B(44) of the Finance Act, 1994; also it is alleged that the activity of the appellant does not fall under the Negative List of services contained in Section 66D of the Finance Act, 1994, hence leviable to service tax. The Ld. Commissioner in the impugned order by interpreting the definition of ‘Service” has confirmed the demands for the period after 01.7.2012. The Hon’ble Supreme Court in 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] observed that ‘Doctrine of Mutuality of Interest’ is also applicable for the period after 01.7.2012; interpreting newly introduced definition of ‘person’ under Section 65B(37) and explanation 3(a) to Section 65B(44) of Finance Act,1994, Their Lordships observed as 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. There are no merit in the impugned order and accordingly, set aside the same - appeal allowed.
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