Sakal Papers Ltd vs Pune Iii

[Arising out of Order-in-Appeal No. III/VM/214/2010 dated 13/09/2010 passed by the Commissioner of Central Excise (Appeals), Pune  III.]

For approval and signature:

Honble Shri M V Ravindran, Member (Judicial) Honble Shri C J Mathew, Member (Technical)

1. Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? : No 2. Whether it should be released under Rule 27 of CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? : No 3. Whether Their Lordships wish to see the fair copy of the Order? : Seen 4. Whether Order is to be circulated to the Departmental authorities? : Yes

Sakal Papers Ltd.

Appellant vs.

Commissioner of Central Excise

Pune  III

Respondent

Appearance:

Mr. Makrand Joshi, Advocate for the appellant

Shri R.K. Das, Dy. Commissioner (AR) for the respondent

CORAM:

Honble Shri M V Ravindran, Member (Judicial) Honble Shri C J Mathew, Member (Technical)

Date of hearing: 04/08/2015 Date of decision: 04/08/2015

ORDER NO: ____________________________

Per: M.V. Ravindran:

This appeal is directed against Order-in-Appeal No. III/VM/214/2010 dated 13/09/2010 passed by the Commissioner of Central Excise (Appeals), Pune  III.

2. Heard both the sides and perused the records. The issue involved in this case is, whether the service provided by the appellant fall under the category of Club or Association Service or otherwise.

3. On consideration of the submissions made by both the sides we find from records that the appellant is in the business of publishing regional newspaper in Maharashtra and is also engaged themselves in an exclusive forum for women by the name Madhurangan, Sakal Rasik Parivar for families and Sakal Sahyadri Suraksha Kavach for individual members. Appellant collects subscription from the members who wish to join this club. In return for such membership the person can attend seminars, lectures or other social / cultural / musical functions/medical treatment, etc. organised by the appellant. Both the lower authorities have held against the appellant after reading of the definition of Club or Association Service under Section 65(25a) of the Finance Act, 1994 and Section 65(105)(zzze) of the Finance Act, 1994.

4. We find strong force in the contention raised by the learned counsel for the appellant that the issue is no more res integra inasmuch as the Honble High Court of Jharkhand in the case of Ranchi Club Ltd. vs. Chief Commissioner of Central Excise & Service Tax 2012 (26) STR 401 has held that rendering of services by the club to its members is not taxable under the category of Club or Association Service. The Honble High Court of Gujarat in the case of Sports Club of Gujarat Ltd. vs. Union of India 2013 (31) STR 645 have struck down the provisions of Section 65(25a) and Section 65(105)(zzze) of the Finance Act, 1994. Since the definition of Club or Association Service has already been struck down, we do not find any reason to sustain the impugned order.

5. The impugned order is set aside and the appeal is allowed with consequential relief.

(Dictated in Court)

(C J Mathew) Member (Technical) (M V Ravindran) Member (Judicial)

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ST/690/2010