M/S Udaipur Chamber Of Commerce & ... vs Cce & St, Jaipur-Ii

1 Whether Press Reporter may be allowed to see the Order for publication as per Rule 26 of the CESTAT (Procedure) Rules, 1982?

2 Whether it should be released under Rule 26 of CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?

3 Whether their Lordships wish to see the fair copy of the Order?

4 Whether Order is to be circulated to the Departmental authorities?

Service Tax Appeal No. 52083 of 2014 and

Service Tax Stay Application No. 52595 of 2014

(Arising out of order-in-appeal No. 370-372(OPD) ST/JPR-II/2013 dated 31.12.2013 passed by the Commissioner (Appeals), Customs and Central Excise, Jaipur-II).

M/s Udaipur Chamber of Commerce & Industry Appellant

Vs.

CCE & ST, Jaipur-II Respondent

Appearance:

Shri Karan Sachdeva, Advocate for the appellant

Shri R. Khanna, DR for the Respondent

Coram: Honble Mr. Justice G. Raghuram, President

Honble Mr. R. K. Singh, Member (Technical)

Final Order No. 52826 / 2015

Per: Justice G. Raghuram:

Appeal is preferred against the order dated 31.12.2013 passed by the Commissioner (Appeals), Customs and Central Excise, Jaipur-II whereby the appeal preferred by the appellant/ assessee was rejected. The primary assessment order confirmed service tax for the period 2008-09 to 2009-10, alleging that the appellant provided Club or Association Service. Proceedings were initiated by issuance of the show cause notice dated 15.12.2010 against M/s Udaipur Chamber of Commerce & Industry, Udaipur alleging rendition of Club or Association Service defined in Section 65(25a) read with Section 65(105) (zzzze) of the Finance Act, 1994. After due process, the proceedings culminated in the impugned order whereby and whereunder service tax demand of Rs.7,60,451/- apart from interest and penalties as specified in the order stand confirmed.

2. The consideration on which levy is confirmed is membership fee and other receipts from members and non-members who utilised services provided by the appellant. In respect of services provided to non-members, the same became taxable only w.e.f. 01.05.2011 in view of the amendment to Section 65(25a) of the Act. In the amended definition service provided to non-members was brought within the scope of the taxable service.

3. In respect of services provided to the appellants members, the issue is fully covered by the decision of this Tribunal in Federation of Indian Chambers of Commerce & Industry vs. CST, Delhi  2015 (38) STR 529 (Tri. Del). Since the period in issue is prior to the amendment of Section 65 (25a), the consideration received by the appellant in respect of services provided to non-members is not taxable during the relevant period in issue.

2. For the aforesaid reasons, the appeal is allowed. There shall however be no order as to costs.

(Justice G. Raghuram)

President

(R. K. Singh)

Member (Technical)

Pant