The Allahabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that the activities of yoga fall under the category of ‘Health and Fitness Services’ and the provision of ‘health and fitness service’ attracts Service tax.
Patanjali Yogpeeth Trust, the appellant assessee was engaged in the activity of providing services relating to health and fitness by way of teaching yoga and meditation, and the assessee’s trust working under the aegis of Baba Ramdev and Acharya Balkrishna are inter-alia engaged in providing Yoga training to various residential and non-residential camps.
For participation in such camps, a charge of participation fees from the participants on the name of the donation was taken and this amount was collected at donation but it was fees for providing the services and hence covered under the definition of consideration.
The assessee appealed against the order passed by the Commissioner of Customs and Central Excise for confirming the service tax demand and penalty on the activities of yoga service rendered by the assessee.
Atul Gupta and Prakhar Shukla, the counsels for the assessee contended that the activities of the assessee are not taxable under the category of Health and Fitness Services as defined by Section 65 (105) (zw) read with Section 65 (51) and 65 (52) of the Finance Act, 1994 for the reason that word ‘yoga’ in the said definition had been used in connection with various other words like sauna and steam bath, Turkish bath, solarium, spas, reducing or slimming salons, gymnasium, meditation, massage, etc.
Also submitted is that the yoga courses rendered by the assessee which are for general well-being and not for curing specific ailments not covered yet.
Sarweshwar T. Khairnar, the counsel for the department relied on the decisions made by the lower authorities and contended that the assessee was an establishment as defined under Section 65 (52) of the Finance Act for providing health and fitness services from their permanent establishment and through various camps organized at various locations.
Thus, even if they are a trust they qualify to be termed as health and fitness establish centers under the provisions of service tax law. Hence, they are liable to pay service tax on the amounts collected by the assessee for providing these services.
The Bench observed that the definition provides exception only in respect of massage and not to any other activity be it yoga or any other, included in the definition and it was clear that yoga of all sorts was included in the definition of “health and fitness service”.
The two-member bench comprising P.K Choudhary (Judicial) and Sanjiv Srivastava (Technical) held that the activities of yoga fall under the health and fitness services which attract service tax.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
