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TMI Blog2019 (1) TMI 435X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000/- every year from every member mills and not discharging service tax liability under "Club or Association Service" (CAS). It also appeared that appellant had collected certain amounts as commission agent under the head "Success Fee" @ 5% despite being covered under 'Business Auxiliary Service' towards carbon trading by facilitating in getting the Carbon Emission Reduction Certificates under the Clean Development Mechanism of the United Nation Framework Convention on Climate change (UNFCC). Department took the view that appellants were required to discharge service tax on the membership fees / membership renewal fees for the period from 2005-06 to 2009-10 under 'Club or Association Service'. Department also took the view that appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant also wish to submit that the definition of "club or association" as per Section 65 (25a) of the Finance Act, 1994, the term does not include a "trade union" and the appellant is registered as a "trade union". On this ground, the demands for subsequent period has been set aside by the Commissioner of Central Excise (Appeals), vide OIA No.9/2016. (ii) Demand under BAS. The members of the appellant association, are setting up Wind Mills and generate wind power, which enables them to earn "carbon credit" which is tradeable in international market. The appellant had entered into an agreement with M/s. Carbon Assets Services for sale of such Carbon Credits. The relevant agreement in this regard is enclosed. Out of the sale proceeds rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been decided in favour of the appellant in a number of Tribunal decisions. This decision has been laid down by the High Court of Jharkhand in the case of Ranchi Club Ltd. - 2012 (26) STR 401 (Jhar.) and by the High Court of Gujarat in the case of Sports Club of Gujarat - 2013 (81) ELT 645 (Guj.). The Division Bench of CESTAT Chennai in a recent decision, in a batch of cases, vide Final Order No. 40366-40385/2018 dt. 06.02.2018 has followed the ratio laid down by the High Courts of Jharkhand and Gujarat (supra) and held that if a Club provides any service to its members may be in any form, then it is not a service by one to another in the light of decisions as foundational facts of existence of two legal entities in such transactions is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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