By TIOL News Service

MUMBAI, MAY 05, 2017: THIS appeal is filed in the year 2012.

The appellant did not appear before the CESTAT despite notice, therefore, the Bench took up the appeal for disposal.

It transpires that the issue involved in the case in hand is whether various services such as general guidance on the facets of business, representation of members' problems and views at local, State and Central Government level, networking and information sharing opportunities, free access to commercial reference library, etc. provided by the appellant to its members, for which they were charging one time registration fee and also recovering annual subscription from them for provision of the services would be classifiable under the category of 'Club or Association Services'.

The tax liability is raised for the period 16/06/2005 to 13/03/2009.

As the demand was confirmed along with interest and penalties, the appellant has filed the appeal, as mentioned, before the Tribunal.

The Bench observed that the issue is no more res integra as the Principal bench in the case of Federation of Indian Chambers of Commerce & Industry - 2014-TIOL-701-CESTAT-DEL, after going through the entire gamut of the issues and the definitions of 'Club or Association Services', concluded that the services provided by the appellant to their respective members and the consideration received therefor is not exigible to tax in view of the principle of mutuality.

The CESTAT extracted the conclusions contained in paragraph 24 of the cited case and held -

"6. It can be seen from the above reproduced conclusion of the Principal Bench, activities undertaken by the Chamber of Commerce have been considered as amounting to public service and of non-chargeable nature. Respectfully following the said decision of the Tribunal it has to be held that the impugned order is unsustainable and liable to be set aside, and we do so."

Setting aside the impugned order, the appeal was allowed.

(See 2017-TIOL-1511-CESTAT-MUM)