Punjab Cricket Association Not Liable To Pay Service Tax Under The Head “Club or Association Service”: CESTAT

Mariya Paliwala

3 Oct 2023 6:00 AM GMT

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  • Punjab Cricket Association Not Liable To Pay Service Tax Under The Head “Club or Association Service”: CESTAT

    The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the Punjab Cricket Association (PCA) is not liable to pay service tax under the heading “club or association service”.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the department has not adduced any evidence to demonstrate that the...

    The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the Punjab Cricket Association (PCA) is not liable to pay service tax under the heading “club or association service”.

    The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the department has not adduced any evidence to demonstrate that the appellants have collected the charges for providing any services to the members.

    The appellant/assessee, Punjab Cricket Association, is registered as a service tax assessee for providing “club or association services." During the conduct of an audit, the Department noticed that the appellants have been receiving payments like registration fees, entrance fees, annual subscriptions, and charges for the provision of additional facilities like billiards, swimming pools, lawn tennis, and accommodation from its members and have not discharged the applicable service tax liability.

    A show-cause notice was issued. The original authority confirmed the demand for service tax along with interest while appropriating an amount paid by the appellants. The department imposed a penalty under Sections 76 and 78 of the Finance Act, 1994. On an appeal filed by the appellants, the Commissioner (Appeals) passed the order confirming the duty of Rs. 8,09,168 along with the penalty under Sections 76 and 78.

    The assessee contended that the PCA is in association with BCCI and enrols eight categories of people as members. The broad categories are A and B, only associate members are charged a fee for enrolling as members; other members are not charged any fee. Therefore, the PCA is not a club or association for the purpose of Section 65(25a) of the Finance Act, 1994, and therefore, no service tax is leviable.

    The tribunal noted that the definition of “club or association” contained in Section 65(25a) makes it plain that any person or body of persons providing services for a subscription or any other amount to its members would be within the tax net.

    The tribunal ruled that PCAs are registered under the Society Registration Act, and the appellants are not liable to pay service tax under the heading “Club or Association Service”.

    Counsel For Appellant: Sudeep Singh Bhangoo

    Counsel For Respondent: Shivani

    Case Title: M/s Punjab Cricket Association Versus The Commissioner of Central Excise, Chandigarh-I

    Case No.: Service Tax Appeal No.395 Of 2011

    Click Here To Read The Order



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