Case Law Details
Indian Pharmaceutical Association Vs Commissioner of Central GST & Central Excise (CESTAT Mumbai)
The appellant does not offer ‘convention services’ but gets events organised by professionals and, by collecting fees which are transmitted to such organisers, enables its members to participate in them. There is no allegation that any part of the fees charged by convention organisers is retained by the appellant. Thus, the activity is beyond the purview of taxability under section 65 (105) (zc) of Finance Act, 1994.
FULL TEXT OF THE CESTAT JUDGEMENT
Two notices, for the period from 2006-07 to 2009-10 and for 2010-11, seeking recovery of ₹ 46,35,019 and ₹ 7,13,157 respectively, along with applicable interest thereon, for imposition of penalty were issued to M/s Indian Pharmaceutical Association on the receipts from members for providing ‘club or association service’ and ‘convention service’ which, having been adjudicated against them and upheld in appeal of theirs, is now impugned before us.
2. Learned Counsel submits that the appellant is national professional body of qualified pharmacists and, besides ensuring compliance with the highest standards, is engaged in improving the quality of their service. According to him, tax under section 65 (105) (zzze) of Finance Act 1994 is not leviable from them, a registered charitable organisation, that retrospective exemption for the period from 16th June 2005 and 31st March 2008 was provided by section 96 of Finance Act, 1994, and that the decision of Hon’ble High of Jharkhand Court in Ranchi Club v. Chief Commissioner of Central Excise & Service Tax, Ranchi Zone [2012 (26) STR 401 (Jhar)] and of the Hon’ble High Court of Gujarat in Sports Club of Gujarat Ltd v. Union of India [2013 (31) STR 645 (Guj)] settles the issue in their favour. It is also submitted by Learned Counsel that, insofar as organising of programs for training and imparting knowledge is concerned, the appellant merely acts as an agent for recovery of the costs charged by professional convention organisers and that the service liable to taxation under section 65(105)(zc) of Finance Act, 1994 is not within the scope of their activity.
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