Order Date – 12 January 2023

Parties: Shree Jain Vish Oshwal Club Vs C.S.T.-Service Tax - Ahmedabad

Facts –

• The Appellant, Shree Jain Vish Oshwal Club is registered trust carrying out various social and charitable services. The Appellant has been giving its property for temporary rent to generate income to boost its charitable activities. The appellant given the property on temporary basis to M/s Gandhi Associates for providing other related service to such parties taking hall on hire basis.
• The case of the department is that the share received by the appellant from contractor is liable to Service Tax under Business Auxiliary Service.

Issue –

• Whether the Service Tax is payable on mere sharing of consideration towards service?

Order –

• The Tribunal held that it will not prima facie amount to provision of any service on the part of the appellant. The appellant had a bona fide belief in non payment of Service Tax. The appellant also submitted that this case is falling under the principle of revenue neutrality in as much as the tax payment if any made by the appellant is available as the Cenvat credit to the contractor who has used the premises of the appellant. 
• In view of this fact, the suppression of fact and mala fide cannot be attributed against the appellant. Accordingly, the demand is hit by limitation as extended period could not have been invoked in the fact of the present case.
• Hence the appeal is allowed.