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TMI Blog2017 (9) TMI 1679X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, not liable to pay any service tax under such Act. Learned Senior Advocate for the petitioners submits that, there are distinctions and differences between a members' club and a proprietary club. A members' club functions on mutuality. Such mutuality is not available in the case of proprietary club. Learned Senior Advocate for the petitioners draws the attention of the Court to Sections 66 and 67 of the Finance Act, 1994 as amended by the Finance Act, 2008. He submits that, Section 66 provides for the charge of service tax. Section 67 lays down the valuation of taxable services for charging service tax. He contends that, Section 67 sub-section (1)[i],[ii] and [iii] requires a consideration to be passed. In the case of a members' clu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sales tax on the ground of mutuality. Referring to 2012(26) S.T.R.401 (Ranchi Club Ltd.-Versus-Chief Commissioner of Central Excise and Sales Tax, Ranchi Zone) he submits that, Jharkhand High Court has exempted a members' club from payment of service tax. Referring to 2013 (31) S.T.R. 645 (Gujarat) (Sports Club of Gujarat-Versus- Union of India) he submits that, the Gujarat High Court has also taken a similar view as that of the Jharkhand High Court and has exempted a members club from purview of service tax after taking into consideration the relevant provisions of the Finance Act. Learned Advocate appearing for the Department submits that, the Sports Club of Gujarat Limited (supra) is pending consideration before the Hon'ble Supreme Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s taken in Sports Club Limited (supra). The view expressed in Sports Club of Gujarat Ltd (supra) is pending consideration before the Hon'ble Supreme Court. Nothing has been placed on record to suggest that, the Hon'ble Supreme Court has taken any view which is contrary to that expressed in Sports Club of Gujarat Ltd.(supra) or Ranchi Club Ltd.(supra). I find no reason as to why a view contrary to that of Ranchi Club Ltd. (supra) and Sports Club of Gujarat Ltd. (supra) is required to be taken in the facts of the present case. In such circumstances, the first petitioner being a members' club, it is not liable to pay the service tax under the Finance Act, 1994 as amended by the Finance Act, 2005. By virtue of an order dated April 13, 2006 pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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