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2020 (9) TMI 433 - AT - Service TaxClub and Association Service - Meaning of club or association - Body of Persons - demand of service tax under the category of ‘club or association services’ and ‘business exhibition service’ on various heads of income broadly categorized under sponsorship from members for seminars and workshops, sale of publications, grants received from Government and European Commission and miscellaneous receipts - periods involved in the two show cause notices are from April, 2007 to March, 2012 and April 2012 to March, 2013 - HELD THAT:- The taxable service under section 65(105) (zzze) of the Act has also been amended by adding the expression ‘or any other person’ after the expression ‘to its members’ thus widening the tax net to include non-members of club or association as well - With effect from July 1, 2012, ‘service’ has been defined under section 65B (44) of the Act and service tax is leviable on all services as defined except the negative list of services set out in section 66D of the Act. The ‘club or association’ was earlier defined under section 65(25a) and 65(25aa) to mean ‘any person’ or ‘body or persons’ providing service. The expression ‘body of persons’ cannot be possibly include persons who are incorporated entities, as such entities have been expressly excluded under sections 65(25a)(i) and 65(25aa)(i) as ‘any body established or constituted by or under any law for the time being in force’. ‘Body of persons’, therefore, would not include a body constituted under any law for the time being in force. Thus, companies and cooperative societies, prior to July 1, 2012, which were registered under respective Acts, would be constituted under those Acts. Incorporated clubs or associations, therefore, prior to July 1, 2012 which were registered under Acts, would be constituted under those Acts. Incorporated clubs or associations, therefore, prior to July 1, 2012 were not included in the service tax net. After July 1, 2012, also the situation does not change for the reason that Explanation 3 uses the same expression. It is not in dispute that in the present case the respondent has been incorporated under the provisions of the Societies Registration Act. Thus, even if the receipts under ‘club or association’ services rendered by the Respondent are counted as income of the Respondent, even then the same cannot be taxed and the Appeal is liable to be dismissed on this ground alone. Appeal dismissed - decided against Revenue.
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