Services to members of club/co-operative housing society is not a service by one to another and is not liable for service tax

Matunga Gymkhana, Tahnee Heights Co-op.Hou. soc. Ltd, Mittal Tower Premises Co-operative Society vs. Commissioner of Service  Tax, Mumbai. [2015-TIOL-108-CESTAT-MUM]

.

FACTS:

The demand of service tax in all these cases is based on the premise that the Appellants are providing “Club & Association” service.

HELD:

Relying on the judgments of Ranchi Club vs. Chief Commr.Of C.Ex. & ST, Ranchi 2012(26) STR 401 (jhar), Sports club of Gujarat vs. Union of India -2013-TIOL-528-HC-AHM –ST and M/s.Federation  of Indian Chambers of Commerce & Industry vs. Commissioner of Service Tax,Delhi-2014-TIOL-701-CESTAT-DEL, where it was held that in view of mutuality and activities of the club there is no service by one to another and thus the levy of service tax is ultra vires, the appeals were allowed.