TMI Blog2008 (6) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... is a sale. Service tax is applicable if there is a service. 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 and not liable to service tax. - 505 of 2006 - ST/104 OF 2008 - Dated:- 13-6-2008 - Appearance: Shri Amit Jain, Authorized Repres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under Companies Act 1956, and accordingly, is a separate person altogether in the eye of law. The members of the club when using the facility of the club are acting as clients of the club. 3. We find that the issue regarding service tax on the club when the services are provided to its member, is now settled by the Hon'ble Calcutta High Court in the case of Dalhousie Institute (S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 been put forward by the respondents to indicate th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxation cannot be ruled out. If I explain my first query as above, it will by crystal clear that if a person being an owner of the house allows another to occupy the house for the purpose of carrying out any function in that house, it will not be construed as transfer of property. But if such person calls upon a third party mandap keeper to construct a mandap in such house then in that case, such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re 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 applicability of the revenue tax of the country. Hence, I do not find it is prudent to say that members club is liable to pay service tax in allowing its members to use its space as mandap. 5. In vie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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