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TMI Blog2007 (3) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... ntre to their members cannot be held to be providing service as Mandap keeper. The contention is that as per Section 65 of Finance Act, taxable services in relation to Mandap keeper means any service provided to a client by Mandap keeper in relation to use of Mandap including the facilities provided to client in relation to such use and also the service, if any, rendered as a caterer and as per the provision of sub-section 66 of the Section 65 of the Act. The definition of Mandap is any immovable property as defined under Transfer of Property Act and includes any furniture, fixtures and floor covering therein, let out for consideration for organizing official, social or business functions. The contention is that appellants are not providing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e service provider against a consideration. Thus, the requisite stipulations of being a client are satisfied in the instant case as it is observed that the renting out of given immovable property to a person, who in turn avails such services from the service provider i.e. IIC against payment. The categorization of such a person is a futile exercise as the definitions supra does not call for such interpretation. It is also not the case where IIC is claiming that the persons, incidentally, the members, who are availing such services, are not being charged for the same. It is on record that members are being charged for such services. Secondly, it is also observed that since IIC is a society registered under an Act, it assumes the identity and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtion of the premises for any function can be termed to be a client. The services rendered by any person to his client presupposes the element of commerciality and obviously this transaction must be involved with the third parties, as opposed to the members of the club." 5. In the case of Saturday Club Ltd v. Assistant Commissioner, Service-tax Cell, Calcutta (supra), the Hon'ble Calcutta High Court held as under: "So far as the merit is concerned, law is well-settled by now that in between the principal and agent when there is no transfer of property available question of imposition of service tax cannot be made available It is true to say that there is a clear distinction between the 'members club' and 'proprietary club'. No argument has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... far as the other point is concerned whether the ratio of the judgments can be acceptable herein or not I like to say yes it is applicable. Income-tax is applicable if there is an income. Sales tax is applicable if there is a sale. Service tax is applicable if there is a ser vice. All three will be applicable in a case of transaction between two parties. Therefore, principally there should be a existence of two sides/entities for having transaction as against consideration. In a members club there is no question of two sides. Members and club both are same entity. One may be called as principal when the other may be called as agent, therefore, such transaction in between themselves cannot be recorded as income, sale or service as per applica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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