ORDER
1. This writ application has been preferred by Ranchi Club Ltd. for declaration that the said club should be exempted to pay any service tax under 'Mandap Keeper's Services' head of account to the respondents, Central Excise Division, Ranchi. It has further been prayed that the respondents may be restrained from enforcing any of the provisions of Service Tax Act i.e. Chapter-V of the Finance Act, 1994.
2. Admitted facts on record are as following:
Ranchi Club Limited is a registered company under the provisions of Section 25 of the Companies Act, 1956, to serve its members as a registered society since long. According to the petitioner the club has been formed on the basis of membership along with relationship with individual members based on doctrine of mutuality. It is further admitted fact on record that with the amended provisions of Finance Act, 1994 Mandap Keeper's Service has been placed under taxation nets and accordingly the respondents noticed the petitioner to get it registered vide Annexures-5 and 6. The petitioner got accordingly themselves registered as Mandap Keeper and club for association of membership vide Annexures-7 and 8 in the years 2000 and 2005 providing the petitioners with registration number for both purposes allotting separate heads for taxes and others dues.
3. However on 11th November, 2006 petitioner submitted a memorandum to the respondents praying therein that in view of the decision in Dalhousie Institute v. Assistant Commissioner, Service Tax Cell and Ors. (2006) 3 VST 139 (Cal), as Annexure9, the petitioners are not liable to pay service tax for 'Mandap Keeper' head of accounts. According to the petitioner when the authorities did not respond, the necessity arose to file this writ petition for suitable direction in this regard.
4. The respondents on notice appeared and filed counter affidavit on 7.8.2007 available on the record. In this counter affidavit the respondents have not disputed the legal position that the petitioner's club is not liable to pay service tax for the services rendered to its member under the provisions of law. However, it has been asserted that the petitioner provides and allows the services for outsiders and receives money on this score for which it is liable to pay service tax as per law. It is also stressed that the petitioner club has got itself registered in accordance with law and now they cannot take plea that the earlier registration was not enforceable upon them.
5. Thus main objection raised in this counter affidavit is that the petitioner's club is making money by providing services to outsiders for organizing functions, social and official which is squarely covered under the provisions of Finance Act, 1994 and liable for service tax under the provisions of Section 69 of the Finance Act (2) as 'Mandap Keeper' with effect from 1.7.1997. Accordingly it has been prayed that the writ petition be dismissed with costs.
6. When the matter was taken up for admission in presence of the parties, the learned Counsel for the petitioner Sri Binod Kumar Poddar, Senior Advocate and counsel for the respondents Mr. Mokhtar Khan agreed that 'Mandap Keeper' under the provisions of the Act and as per decisions cited by the petitioners annexed with this writ petition vide Annexures-2, 3, 4 and 9 is not liable to pay service tax under the provisions of Sections 65, 66, 67 of the Finance Act, 1994 when the services were utilized by the members of the club. Therefore the admitted position of law remains that the petitioner's club is not liable to pay service tax for the services provided to its members under the Act and this position of law does not require any clarification ;in the admitted facts.
7. However, as regards the service provided by the petitioner's club to any one other than the members is liable for service tax. Learned counsels for both sides do not dispute this admitted position of law. They are to follow the law accordingly.
8. In view of the above stated facts this writ petition is disposed of but without costs.