By TIOL News Service

MUMBAI, JULY 29, 2017: THE appellant is engaged in the business of publishing regional residential newspapers in Western Maharashtra and have also engaged themselves in running exclusive forum of women by name of 'Madhurangan' 'Sakal Rishi Pariwar', 'Family Doctor Club' for families and 'SakalSahyadriSurakshaKavach' for individual member in the cities of Pune, Aurangabad etc.

The case of the department is that the appellant is liable to pay service tax on the subscription fee, annual subscription rate of monthly/annual publications for magazines etc. and value of medical treatment books.

The demands were confirmed by the lower authorities.

In appeal before the CESTAT, the appellant submits that this issue in the appellant's own case has been considered by the Division Bench of the Tribunal vide order No. A/2684/15/STBdt. 04/08/2015 - 2015-TIOL-2939-CESTAT-MUM and it is held that service tax on the subscription of Club and Association service is not chargeable.

The Bench observed that the issue involved - Whether subscription from the members of the forum is chargeable to service tax under the service of club and association service, has been decided in the appellant's own case in their favour by holding thus –

"4. We find strong force in the contention raised by the learned counsel for the appellant that the issue is no more res integra inasmuch as the Hon'ble High Court of Jharkhand in the case of Ranchi Club Ltd. vs. Chief Commissioner of Central Excise & Service Tax 2012 - 2012-TIOL-1031-HC-JHARKHAND-ST has held that rendering of services by the club to its members is not taxable under the category of 'Club or Association Service.' The Hon'ble High Court of Gujarat in the case of Sports Club of Gujarat Ltd. vs. Union of India 2013 (31) STR 645 - 2013-TIOL-528-HC-AHM-ST have struck down the provisions of Section 65(25a) and Section 65(105)(zzze) of the Finance Act, 1994. Since the definition of 'Club or Association Service' has already been struck down, we do not find any reason to sustain the impugned order."

Concluding that on the same issue the Tribunal has already taken a view that the members subscription received by the forum is not chargeable to service tax, the impugned order was set aside and the appeals were allowed.

(See 2017-TIOL-2663-CESTAT-MUM)