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TMI Blog2020 (2) TMI 1116X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise Commissionerate collected intelligence, investigated the appellant and found that they were providing services, facilities and advantages to their members and collected amounts under the following heads: (i) Membership Fee (ii) Contribution to Building Fund (iii) Membership and Sports Subscription (iv) Sports Receipts (v) Card Room Charges (vi) Guest Room Charges (vii) New Year & Other Function Receipts (viii) Guest Fee (ix) Minimum User Charges (x) Tambola Receipts (xi) Banquet Hall Receipts (xii) Miscellaneous Receipts 3. These amounts appeared to fall under the definition of Club or Association service in terms of Section 65(25a) of the Finance Act, 1994 and taxable under section 65(105)(zzz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been made under Club or Association service. He submits that it is now settled by the Hon'ble Apex Court that the Club or Association is not a distinct legal person different from its members. Therefore, any service rendered by a Club or Association to its own members amounts to self service and is therefore not chargeable to service tax. This has been decided in a catena of judgments staring from the case of Ranchi Club Ltd [2012 (26) STR 401 (Jhar)]. Therefore, no service tax can be charged upon them on the amounts which they have, undisputedly collected from members. This point was raised before learned adjudicating authority who, however, held that the appellant does not qualify the tests to establish mutuality. His findings in Para 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vant portions of Calcutta Club Ltd (supra) judgment are as follows: "Given these observations, it is clear that if persons carry on a certain activity in such a way that there is a commonality between contributors of fund and participators in the activity, a complete identity between the two is then established. This identity is not snapped because the surplus that arises from the common fund is not distributed among the members - it is enough that there is a right of disposal over the surplus, and in exercise of that right they may agree that on winding up, the surplus will be transferred to a club or association with similar activities. Most importantly, the surplus that is made does not come back to the members of the club as sharehold ..... X X X X Extracts X X X X X X X X Extracts X X X X
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