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2020 (2) TMI 1116 - AT - Service TaxLevy of service tax - Club or Association service - principles of mutuality - appellant were providing services, facilities and advantages to their members and collected amounts under various heads - distinct legal status of club from its members or not - case of appellant is that since they have been providing services to members as well as non-members they do not qualify to be called as a “club” - HELD THAT:- It is not in dispute that the amounts have been collected by the appellant from their own members as can be seen from the impugned order itself. They might be rendering same services to non-members as well and may also be generating a surplus. However, these factors do not change the character of the appellant as that of a club or association. As decided by the 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] and several previous judgments, no service tax can be levied on a club or association on the amounts collected by them from their own members either towards subscription or towards some other services because the club is held to be not a different legal entity but the same as that of the members. As there is no distinction between the identity of the members and the identity of the club, there is no service provider – service recipient relationship in such transactions. Therefore, no service tax can be levied upon the appellant. Appeal allowed - decided in favor of appellant.
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