TMI Blog2020 (3) TMI 1156X X X X Extracts X X X X X X X X Extracts X X X X ..... NER OF CENTRAL EXCISE SERVICE TAX [ 2012 (6) TMI 636 - JHARKHAND HIGH COURT] ) and it was held that club is formed on the principle of mutuality and therefore if the club provides services to its members, it is not a service by one legal entity to another and is not liable to service tax. Appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 1653 of 2010 - A/30254/2020 - Dated:- 20-1-2020 - HON'BLE Dr. D.M. MISRA, MEMBER (JUDICIAL) AND HON'BLE MR. P. VENKATA SUBBA RAO, MEMBER (TECHNICAL) Shri M.V. Sridhar, Advocate for the appellant. Shri N. Bhanu Kiran, Authorized Representative for the respondent. ORDER PER: P. VENKATA SUBBA RAO. 1. This appeal is filed against Order-in-Ori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Courts and the Hon ble Apex Court were also followed by various benches of Tribunal in holding that the amounts collected by clubs from their own members are not liable to service tax as there is no service provider and service recipient relationship. As the issue is no longer res integra the impugned order may be set aside and their appeal may be allowed. 4. Ld. Departmental Representative supports the impugned order. 5. We have considered the arguments on both sides and perused the records. The question of law in this case is whether the club and its members are distinct entities and hence the service rendered by the club to its members should be considered as a taxable service under the head club or association service or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mbers cannot be said to be income within the meaning of the Act. But, if such receipts are from sources other than the members, then still can it be said that such receipts are not taxable in the hands of the club? The answer is obvious. No exemption can be claimed in respect of such receipts on the plea of mutuality. To illustrate, a Members Club may have income by way of interest, security, house property, capital gains and income from other sources. But such income cannot be said to be arising out of the surplus of the receipts from the members of the club. and answered the question in affirmative and questions referred were as under:- (I) Whether, on the facts and in the circumstances of the case, the Tribunal has rightly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng as mandap keeper, then it is not a service by one to another in the light of the decisions referred above as foundational facts of existence of two legal entities in such transaction is missing. However, so far as services by the club to other than members, learned counsel for the petitioner submitted that they are paying the tax. 19. Therefore, this writ petition deserves to be allowed and it is held that rendering of service by the petitioner-club to its members is not taxable service under the Finance Act, 1994 and the writ petition of the petitioner is allowed accordingly. 6. Appeal against this judgment of the Hon ble High Court of Jharkhand along with a bunch of other cases, were decided by the Larger Bench of the Hon b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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