Assessee needs to demonstrate that their case is covered within ambit of any settled judgement

Tvl.Surya Recreation Club Vs Assistant Commissioner (CT) (Madras High Court)

Madras High Court held that Supreme Court in the case of State of West Bengal vs. Calcutta Club Limited concluded that sales tax is not payable on any sale of goods in the form of food, refreshments and drinks including liquors by the club to its permanent members. However, petitioner needs to demonstrate that their case comes within the ambit of said judgement.

Facts-

Petition filed under Article 226 of the Constitution of India praying for issuance of writ of Certiorarified Mandamus, calling for the records relating to the impugned order passed by the Respondent [Assistant Commissioner (CT)] and the consequential orders and quash the same as illegal and consequently, to forbear the Respondent from assessing the Petitioner Club to service tax.

It is the case of the Petitioner that the issue as to whether there is any sale of goods in the form of food, refreshments and drinks including liquors by the Petitioner to its permanent members and thus, the Petitioner is not liable to pay sales tax under Tamil Nadu Value Added Tax Act, 2006 stands resolved by the judgment of the Supreme Court in the case of State of West Bengal vs. Calcutta Club Limited , wherein, it has been held that doctrine of mutuality would continue to apply even after 46th Amendment of the Constitution of India. It is thus submitted that proposed levy is without jurisdiction.

Please become a Premium member. If you are already a Premium member, login here to access the full content.