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TMI Blog2024 (5) TMI 1340X X X X Extracts X X X X X X X X Extracts X X X X ..... tan Petroleum Corporation. The appellant was issued Show Cause Notice alleging that they have not discharged appropriate Service Tax under Club or Association Membership Services, Supply of Tangible Goods Services, Business Auxiliary Services and Renting of Immovable Property Services. After due process of law, the Original Authority confirmed the demand, interest and imposed penalties. On appeal, the Commissioner (Appeals) upheld the same. Hence this appeal. 2.1 The Ld. Counsel Shri S. Sathianarayanan appeared and argued for the appellant. It is submitted that the appellant is an association and is registered under the Societies Registration Act. The Department has demanded service tax on the membership fees collected from the members. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under GTA services on the freight charges paid to appellant as a service recipient and therefore, the demand cannot be made on the appellant under Supply of Tangible Goods Services. It is prayed that the said demand may be set aside. 2.3 In regard to Business Auxiliary Services, the Ld. Counsel adverted to the discussion in paragraph 6.2 of the order passed by the Adjudicating Authority. It is submitted that the appellant does not purchase and sell the goods on behalf of the oil companies. They engage only in transportation of the goods of the oil companies. The view taken by the Department that the appellant is engaged in purchase and sale of goods on behalf of the oil companies and is doing promotion and marketing is entirely wrong. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of services, facilities or advantages for a subscription of any other amount'. The relationship of a member with its association and vice versa is hit by the doctrine of mutuality. There is no service provider and service recipient relationship. The issue as to whether the subscription / entrance fees collected by the association from its members can be subjected to levy of service tax under the said category was considered by the Tribunal in the case of M/s. Ranchi Club Ltd. (supra). The Hon'ble Apex Court in the case of State of West Bengal Vs. Calcutta Club Limited [2019 (29) GSTL 545 (SC)] has also held that the demand of service tax cannot sustain. Following these decisions, we are of the view that the demand under this heading cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by M/s. HPCL themselves. The nature and type of arrangement between the two parties also service to indicate that there is no Supply of Tangible Goods involved in this matter. This being so, the demand made under this category also cannot be sustained and requires to be set aside. So ordered." Following the above decision, we are of the view that the demand under Supply of Tangible Goods Services cannot sustain and requires to be set aside. Ordered accordingly. 5.3 The Department has demanded service tax under BAS. In paragraph 6.2, it has been discussed by the Adjudicating Authority that the appellant is engaged in purchase and sale of goods on behalf of the oil companies and are receiving subsidies from them in the nature of discount, c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f verification. In case, the amount is above the threshold limit, the appellant is liable to pay the service tax along with interest, and also the penalties in this regard for the respective period.
6. In view thereof, the impugned order is modified to the extent of setting aside of the demand of service tax, interest and penalties under Club or Association Services, Supply of Tangible Goods Services and Business Auxiliary Services. The issue with respect to Renting of Immovable Property Services is remanded to the Adjudicating Authority for verification as discussed above.
7. The appeal is partly allowed as above with consequential reliefs, if any, as per law.
(Order dictated and pronounced in open court) X X X X Extracts X X X X X X X X Extracts X X X X
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