Calcutta Club Ltd. Vs Commr. of Service Tax-II (CESTAT Kolkata)
CESTAT Kolkata held that club not being an advertising agency, service tax cannot be levied for advertisement published in souvenir or any display carried out in club premises. Accordingly, service tax demand set aside.
Facts- The appellant is a members-only club, registered as a Public Limited Company under the Companies Act, 1956. Proceedings were initiated demanding Service Tax in respect of various services being provided by them. After due process, the Adjudicating authority confirmed the demands along with interest and penalty. Being aggrieved the appellant is before the Tribunal.
Conclusion- Held that in order to fall under this classification, the person providing service should be an „Advertising Agency‟ and in the present case, the Club is not an Advertising Agency taking various works associated with the Advertising. Further, CBIC vide Circular No. 96/7/2007-ST dated 23rd August,2007 has clarified that merely canvassing advertisements for publishing, on commission basis, is not classifiable under the taxable service falling under section 65(105)(e).Such services are liable to service tax under business auxiliary service section 65(105)(zzb). In the present case, if any Adverisement is published in the souvenir, or any display is carried out in the Club premises, that in itself cannot make the appellant liable for payment of Service Tax. Therefore, we set aside the confirmed demand of Rs.2,49,342
