FICCI not liable to pay Service Tax under Club or Association - CESTAT
WE covered this issue in DDT 343 - 18 04 2006 - FICCI,CII,ASSOCHAM and several trade associations liable to Service Tax as club or association? and in DDT 456 25 09 2006 - Bar Council of India is a club liable to pay Service Tax? : No Charity! says,Board.
As per the definition of "club or association",
(iii) any person or body of persons engaged in any activity having objectives which are in the nature of public service and are of a charitable ,religious or political nature;
is not included in the definition.
Eight years ago,we questioned why FICCI will not fall under the above exclusion and now the CESTAT has emphatically ruled that appellants FICCI are engaged in activities having objectives which amount to public service and are of a charitable nature and so are outside the purview of Service Tax of club or association.
In fact the Tribunal found the adjudication order of the Commissioner is stricken with the vice of gross judicial indiscipline.The Commissioner must be considered as having misconducted himself in refusing to follow the clear and direct judgment of the Supreme Court,which is conclusive on the principle,that FICCI is a charitable organization having objectives and pursuing activities of general public utility,this being its dominant purpose.
We bring you this order today.
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