The Ahmedabad bench of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) ruled that the club is not required to pay the service tax on the charges collected from its members.
The issue involved in the present case is whether the appellant, Mpc Gymkhana is liable to pay service tax on providing short term accommodation to its members and affiliated members of the club.
The counsel of the appellant at the outset submits that any service provided by the club to its members does not amount to provision of service as the club is composed of members. Further, there is no difference between the club and its members therefore, in this position, there is no provision of service.
The bench of Ramesh Nair (Judicial Member) and C.L.Mahar (Technical Member) observed the facts of the case that the appellant club has recovered charges towards short term accommodation from its club members and affiliated club members.
Further, the tribunal noted the decision of the Supreme Court in the case of Calcutta Club Ltd., that the club and club members are not different entities therefore, the service provided by the club to its members does not fall under the provision of service accordingly.
It was held in the said judgment that the club is not required to pay the service tax on the charges collected from its members.
The authority considered the judgment of the supreme court whereby, the issue in the present case does not remain res-integra, the impugned orders are not sustainable hence the same are set aside.
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