Order Date – 19 October 2023

Parties: M/s. Karnataka Golf Association Vs The Commissioner of Service Tax

Facts –

• The Appellant, M/s. Karnataka Golf Association, is a registered society providing club membership services.
• The Service Tax department alleged that advance admissions/enrollment fees collected from prospective members should be taxed under "Club or Membership Association Service."
• Show cause notices were issued for service tax recovery from 2005 to 2014, and demands were confirmed after adjudication.

Issue –

• Whether advance admission fees collected by the appellant are subject to Service Tax, specifically after July 1, 2012?

Order –

• The Tribunal observed that the Hon’ble Supreme Court in State of West Bengal & Ors. Vs. Calcutta Club Association’s case wherein it was held that ‘Doctrine of Mutuality of Interest’ is also applicable for the period after 01.7.2012; interpreting newly introduced definition of ‘person’ under Section 65B(37) and explanation 3(a) to Section 65B(44) of Finance Act,1994.
• The Tribunal does not see merit in the impugned order and accordingly, set aside the same. In the result, the appeals are allowed with consequential relief, if any, as per law.