M/s Udaipur Chamber of Commerce & Industry vs CCE And ST, Jaipur-II

Appeal is preferred against the order dated 31.12.2013 passed by the Commissioner (Appeals), Customs and Central Excise, Jaipur-II whereby the

appeal preferred by the appellant/ assessee was rejected. The primary assessment order confirmed service tax for the period 2008-09 to 2009-10,

alleging that the appellant provided ""Club or Association Service"". Proceedings were initiated by issuance of the show cause notice dated 15.12.2010

against M/s Udaipur Chamber of Commerce & Industry, Udaipur alleging rendition of ""Club or Association Service"" defined in Section 65(25a) read

with Section 65(105)(zzzze) of the Finance Act, 1994. After due process, the proceedings culminated in the impugned order whereby and whereunder

service tax demand of Rs.7,60.451/- apart from interest and penalties as specified in the order stand confirmed.

The consideration on which levy is confirmed is membership fee and other receipts from members and non-members who utilised services provided

by the appellant. In respect of services provided to non-members, the same became taxable only w.e.f. 01.05.2011 in view of the amendment to

Section 65(25a) of the Act. In the amended definition service provided to non-members was brought within the scope of the taxable service.

In respect of services provided to the appellant's members, the issue is fully covered by the decision of this Tribunal in Federation of Indian

Chambers of Commerce & Industry vs. CST, Delhi - 2015 (38) the period in issue is prior to the amendment of Section 65(25a), the consideration

received by the appellant in respect of services provided to non-members is not taxable during the relevant period in issue.

For the aforesaid reasons, the appeal is allowed. There shall however be no order as to costs