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2022 (4) TMI 304 - AT - Service TaxLevy of Service Tax - membership /admission / enrolment fee collected from the prospective members (applicants) who had applied for club membership - activity carried out by one person for another for consideration would come under the definition of service or not - mutuality of interest - Taxability of Guest Fee - applicability of N/N. 6/2005-ST dt. 01/03/2005 - HELD THAT:- All the charges on which demand of service tax was confirmed is squarely covered by the judgment of the Hon’ble Supreme Court in the case of 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]. Therefore, the issue is no longer res integra - It was held in the said case that there has to be an activity carried out by one person for another for consideration which would apply on all fours even in the context of definition of service. Therefore, the transaction between members and the club not amount of rendering of any service by the appellant to their members - Demand do not sustain as no service is taking place. Taxability - guest fee - HELD THAT:- Without going into the issue of taxability, it is found that the appellant is clearly eligible for exemption Notification No.6/2005-ST. According to which, the appellant are entitled for the exemption when the value of taxable service is not exceeding ₹ 4 lakhs. In the present case, after excluding the value of all other services which are not taxable in view of the Hon’ble Apex Court’s judgment, the value remains well within the threshold limit of the exemption i.e. ₹ 4 lakhs. Therefore, the appellant is otherwise eligible for exemption under the Notification No.6/2005-ST. Accordingly, the guest fee even if taxable is exempted. The demand of service tax in both the appeals are not sustainable - appeal allowed - decided in favor of appellant.
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