Relief to Karnataka Golf Association: CESTAT Quashes Service Tax Demand on Club or Membership Association Service on ground of Violation u/s 65B of Finance Act [Read Order]
![Relief to Karnataka Golf Association: CESTAT Quashes Service Tax Demand on Club or Membership Association Service on ground of Violation u/s 65B of Finance Act [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/10/Relief-to-Karnataka-Golf-Association-CESTAT-Quashes-Service-Tax-Demand-Club-or-Membership-Association-Service-Tax-Demand-Service-Tax-CESTAT-Excise-and-Customs-TAXSCAN.jpg "Relief to Karnataka Golf Association: CESTAT Quashes Service Tax Demand on Club or Membership Association Service on ground of Violation u/s 65B of Finance Act [Read Order]")
The Bangalore bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) granted relief to the Karnataka Golf Association by quashing the service tax demand on club or membership associations services on the ground of violation of section 65B of the Finance Act,1944. Karnataka Golf Association, the appellant assessee was a society registered under the Mysore...
The Bangalore bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) granted relief to the Karnataka Golf Association by quashing the service tax demand on club or membership associations services on the ground of violation of section 65B of the Finance Act,1944.
Karnataka Golf Association, the appellant assessee was a society registered under the Mysore Societies Registration Act, 1960, and also registered with the Service Tax department and discharging service tax under the category of Mandap Keeper service and advance admissions/enrolment fees collected from the prospective Members, who apply for club membership.
The assessee appealed against the order passed by the Commissioner of Service Tax for confirming the service tax demand along with the interest and for the imposition of a penalty against the assessee.
K. S. Ravi Shankar, the counsel for the assessee contended that the orders were contrary to the provisions of 65B of the Finance Act as the assessee was an incorporated body being a registered society under the Mysore Societies Registration Act.
K. S. Naveen Kumar and Dyamappa Airani, the counsels for the department relied on the decisions made by the lower authorities and contended that the service tax demand on club membership was as per the law and liable to be sustained.
The Bench observed that in the case of the State of West Bengal & Ors. Vs. Calcutta Club Association, the court held that the amount collected as an advance fee for membership of the club was not liable for service tax and the demand itself was not sustainable.
The two-member bench comprising D M Misra (Judicial) and Pullela Nageswara Rao (Technical) quashed the service tax demand while allowing the appeal filed by the assessee.
To Read the full text of the Order CLICK HERE
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