TMI Blog2008 (9) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... TECHNICAL MEMBER Smt. G. Dhana Madhri for the Appellant. V. V. Hariharan for the Respondent. [Order per : P.G. Chacko, Judicial Member. - After examining the records and hearing both sides, we note that the lower authority has demanded service tax of over Rs. 53 lakhs from the appellants for the period June, 2005 to March, 2007 and has also imposed a penalty on them. Interest on tax has also been demanded. The major part of the demand is on the amount of commission received by the appellants (hereinafter called the 'race club') from 'bookmakers' during the above period. The mechanism of transactions between the race club and the bookmakers is easily discernible from a judgment of the Hon'ble Supreme Court (copy available on re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... name, the name of the horse backed, the amount of bet and the amount of prize money payable if the horse wins. The winning punters collect their money directly from the Book Maker concerned. The net result is that 75 per cent of the tote-collections of each race are distributed as prize money for winning tickets, 20 per cent is paid as betting tax to the State Government and the remaining 5 per cent is retained by the club as commission. Similarly, the Book Makers collect from their punters, besides the bet amount specified in the betting card, 20 per cent bet-tax payable to the State and 5 per cent payable to the club as its commission. It is thus obvious that the club is entitled to only 5 per cent as commission from the tote-collections ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansaction processing. Explanation - For the purposes of this clause, the expression 'infrastructural support services' includes providing office along with office utilities, lounge, reception with competent personnel to handle messages, secretariat services, internet and telecom facilities, pantry and security;" It is the case of the appellants, reiterated today by their counsel, that the service rendered by the race club to bookmakers, for which commission was received by the club, is not covered by the above definition. The JCDR has contested this plea. On a perusal of the records, we note that, neither the show-cause notice nor the adjudicating authority has specified or paticularised the subject service for its classification unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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