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2018 (1) TMI 1274 - AT - Service TaxRenting of Immovable Property Services - Revenue felt that the appellants are providing Club or Association services for the period before 01.07.2012 and was not covered under the term public library for the period after 01.07.2012 - whether the activity engaged by the appellants falls in the category of club or association service during the period upto 31.06.2012 and whether the activities is classifiable as taxable service w.e.f 01.07.2012? Held that: - Admittedly, The Browser is open to general public and accessible to all, who pay subscription amount. Further, the fact that it has no reading room or no newspaper or periodicals does not take away from the fact that public at large has right to though it is regulated by way of the prescribed fees - the library being run by the appellants is in the nature of a public library. The activity of lending and return of books is the fee based activity for which they charge subscription fees. The services are being provided not to the share holders of the company but to third parties. As per the definition under Section 65(25)(a) club or association is a body of persons which provides services to its members. Subsequently, w.e.f. .01.05.2011, the definition was changed and Section 65(25)(a) was replaced by Section 65(25)(aa) to add the word Primarily to its members. The services in question are being provided not to its share holders, who are the members of the company but to other persons who are third parties - for the period after 01.05.2011 upto 30.06.2012, the show cause notice has not made any allegation invoking Rule 65(25)(aa), which had come into effect after that date - For the period after 01.07.2012, in the negative list of services on which service tax is exempted, the services of public libraries are exempted under N/N. 25/2012-ST dated 20.06.2012. Appeal allowed - decided in favor of appellant.
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