Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 1178 - CESTAT BANGALOREValuation - Club or association service - principles of mutuality - inclusion of advance enrolment fee, subscription charges and other sums in assessable value - time limitation - Held that:- The issue is no longer res integra in view of the decision of Gujarat High Court in the case of Sports Club of Gujarat Ltd. [2013 (7) TMI 510 - GUJARAT HIGH COURT] and that of Jharkhand High Court in the case of Ranchi Club Ltd. [2012 (6) TMI 636 - JHARKHAND HIGH COURT] - It has been categorically held that in view of the mutuality of interest and in view of the activities of the club, if the club provides services to its Members that would not constitute service to others. In fact, Gujarat High Court has held the levy itself to be ultra vires of the constitution - various judgments have held that entry fees are subscription fees, mandap charges, charges for common effluent treatment, etc., have been held to be excluded from the purview of taxation. Charges collected from guests and non-members - Held that:- The appellant contended that the services rendered to non-members have come to be charged with effect from 5.1.2011 only. However, it is found that it was held by Jharkhand High Court in the case of Ranchi Club Ltd. that so far as services by club to other than members are chargeable as submitted by the petitioner therein. Therefore, in the instant case also, the charges like golf set hire charges and tournament surplus are collected from non-members - The above judgment was rendered in respect of the period prior to 5.1.2011. Therefore, the contentions of the appellants that charges collected from non-members are taxable only from 5.1.2011 are not acceptable. It cannot be said that principle of mutuality of interest is applicable in respect of non-members. For the sake of computation of such charges collected from non-members and the tax payable on the same, the issue requires to go back to the original authority - appeal allowed by way of remand.
|