TMI Blog2015 (1) TMI 1146X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in Sports Club of Gujarat Limited [2013 (7) TMI 510 - GUJARAT HIGH COURT], as the relevant provisions (namely Section 65(25a), Section 65(105)(zzze) and Section 66 of the Act), to the extent these provisions purport to levy service tax in respect of services provided by a "club or association" to its members is declared ultra vires, we hold that there are no operative legislative provisions of the Act legitimizing the levy and collection of service tax from the appellants, for providing "club or association" service, in so far as these relate to any services provided to members of these appellants. Services provided to non members fall outside the ambit of "club or association" service prior to 01.05.2011 and subsequent to this dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1994 states that club or association means anybody or body of persons providing services facilities for a subscription but does not include any body engaged in activities having objectives which are in the nature of public service and are of charitable, religious or political nature. However, Revenue was of the view that the activities are not charitable in nature as they are chargeable and neither are they in the nature of public service. According to Revenue, the appellant do not come in the purview of the exclusion clause under Section 65(25a) ibid. Therefore, the demand of service tax against the appellant was confirmed, appropriate interest ordered and penalties imposed under Sections 76, 77 78 of the Act. =ibid. 2. The sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Maharashtra Co-operative Housing Societies Act. In their case also the service tax had been paid initially and later refund was claimed. The refund claims were rejected on merits without going into the aspect of unjust enrichment. 4. Heard all the appellants and Revenue. 5. The Ld. Counsel relied on three judgments namely: (i) Ranchi Club vs. Chief Commr. Of C. Exc. ST, Ranchi 2012 (26) STR 401 (Jhar) (ii) Sports Club of Gujarat vs. Union of India - 2013-TIOL-528-HC-AHM-ST (iii) M/s. Federation of Indian Chambers of Commerce Industry vs. Commissioner of Service Tax, Delhi - 2014-TIOL-701-CESTAT-DEL. 6. The Ld. AR's reiterated the findings of Revenue authorities. 7. We have heard the rival content ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Since the issue whether there are two persons or two legal entity in the activities of the members' club has been already considered and decided by the Hon'ble Supreme Court as well as by the Full Bench of this Court in the cases referred above, therefore, this issue is no more res integra and issue is to be answered in favour of the writ petitioner and it can be held that in view of the mutuality and in view of the activities of the club, if club provides any service to its members may be in any form including as mandap keeper, then it is not a service by one to another in the light of the decisions referred above as foundational facts of existence of two legal entities in such transaction is missing. However, so far as services b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no operative legislative provisions of the Act legitimizing the levy and collection of service tax from the appellants, for providing club or association service, in so far as these relate to any services provided to members of these appellants. It was further held by the bench that We hold that services provided to non members fall outside the ambit of club or association service prior to 01.05.2011 and subsequent to this date there is no specific allegation that the services provided to non-members fall within the expanded scope of this taxable service qua provisions of the Finance Act, 2011............... . 8#. In view of the above judgments, the issue at hand is no more res integra. We set aside the impugned orders and allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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