Mere Registration as Charitable Trust cannot absolve them of Service Tax liability

The appellant clubs have maintained that it is a non profit organization and certificate has been issued by Assistant Charity Commissioner and therefore it has to be treated as a charitable trust. It was submitted that according to the definition of taxable service provided by a club or association, any person or body of persons engaged in the nature of chargeable activity, is exempt. However, it is seen that the services provided by the appellants such as health club, sports activity organizing tennis matches on renting the ground, renting the place for party purposes, organizing tournaments ...