KARNATAKA GOLF ASSOCIATION Vs. COMMR. OF SERVICE TAX

JUDGEMENT

(1.) THIS stay petition is filed for the waiver of pre -deposit of the following amounts:

(2.) a. Service Tax - Rs. 67,06,746/ -.

(3.) LD . Counsel submits that the demand as has been confirmed related to the period October, 2007 to September, 2008. It is his submission that the service tax has been demanded on the advance fee collected by them. It is his submission that Karnataka Golf Association (KGA) is a society and registered under the Mysore Societies Registration Act, 1960. It is his submission that person desirous of being a member of KGA is required to pay an amount as advance. It is his submission that the waiting period for getting membership is substantial and the member has to go to the rigorous test of interview for becoming a member. In view of this, the amount is fixed to be paid in advance by the person. He would submit that the definition of the "Club or Association" as per the Finance Act, 1994 would indicate only the services that are provided to the members and not those who are yet to become members. It is his submission that the person who pays the advance amount is not to be considered as member. He would read the findings of the Adjudicating Authority in para 69 and submits that the entire amount received as advance has been included in profit or to be profit and has been taxed. He would draw our attention to the memorandum and rules of KGA and submit that the members means who are admitted to club as members.