Classification of services – Section 65(25)(a), read with section 65(25)(aa), of the Finance Act, 1994, – Club or association – Period before 1-7-2012 and after 1-7-2012 – Assessee, a private limited company, had a book store containing fiction and non-fiction books – It enrolled members who wished to borrow books for their reading pleasure against varying annual charges – Adjudicating Authority held that activity undertaken by assessee would fall in category of ‘club or association service’ during period upto 30-6-2012 and said activity was not covered under term ‘public library’ for period after 1-7-2012 – Whether since in instant case service in question was being provided not to shareholders but to third parties, activity undertaken by assessee would not fall in category of ‘club or association service’ during period upto 30-6-2012 – Held, yes – Whether since library was open to general public and accessible to all who paid subscription amount, library being run by assessee was in nature of a ‘public library’ for period after 1-7-2012, being exempt for tax – Held, Yes.
Circulars and Notifications : Notification No. 25/2012-ST, dated 20-6-2012, CBEC Circular No. B1/6/2005/-TRU, dated 27-7-2005
Citation: [2018] 92 taxmann.com 2 (Chandigarh – CESTAT)