MADRAS RACE CLUB Vs. COMMISSIONER OR SERVICE TAX

JUDGEMENT

(1.) AFTER examining the records and hearing both sides, we note that the lower authority has demanded service tax of over Rs. 53 lakhs from the appellants for the period June,' 05 to March, '07 and has also imposed a penalty on them. Interest on tax has also been demanded. The major part of the demand is on the amount of commission received by the appellants (hereinafter called the 'race club') from 'bookmakers' during the above period. The mechanism of transactions between the race club and the bookmakers is easily discernible from a judgment of the Hon'ble Supreme Court (copy available on record) which was passed in the case of Dr. K.R. Lakshmanan v. State of Tamil Nadu and Anr. The relevant part of the judgment is extracted below:

(2.) HAVING found prima facie case for the appellants, we grant waiver of predeposit and stay of recovery in respect of the amounts of service tax, interest thereon and penalty demanded from the appellants.