ST - Fitness Services - By undergoing meditation course, an individual will definitely be physically well as he is at peace with his inner soul - meditation helps an individual in attaining mental peace and physical well-being of an individual would also encompass mental peace: CESTAT
By TIOL News Service
MUMBAI, JUNE 10, 2015: THE appellants are Osho International Foundation & Neo Sannyas Foundation.
The CCE, Pune-III investigated the appellants and came to the conclusion that the services of yoga, meditation and massage to the customers/participants on payment of specified charges/fees would fall under the category of "Health and fitness services". ST demands for the period 1/04/2008 to 17/03/2009 was confirmed by the adjudicating authority and, therefore, the appellants are before the CESTAT.
We reported the stay order as 2011-TIOL-1292-CESTAT-MUM.
When the appeal was heard in April, 2015 the appellant submitted that to fall under the proposed category the activity must be shown to have been undertaken for physical well-being. Inasmuch as the meditation courses conducted by the appellant are spiritual meditation and have nothing to do with the physical well-being of an individual undergoing the meditation courses, the appellant submitted. It is emphasised that ‘meditation' is not connected with any physical well-being hence applying the law of ejusdem generis the demand confirmed is not correct and needs to be set aside.
The appellant also drew the attention of the Bench to a letter dated 25 April 2003, vide which the office of the Chief Commissioner of Central Excise and Customs, Pune Zone had clarified to appellants that no service tax registration is required for the courses of meditation and yoga; that subsequently on 18 th February 2009, the CBE & C on a query raised by CCE, Pune-III informed that the services rendered by the appellant would be falling under the category of "Health and fitness Centre". It is further submitted that when there is a change of mind of the revenue authorities, such a change would be applicable form the date when the revenue authorities informed the appellant.
The AR submitted that the definition of "health and fitness services" is very clear and unambiguous inasmuch as the word "meditation" is included specifically and there is no scope to exclude the activities undertaken by the appellant from the definition; that appellant's own website indicates physical benefits by undertaking the meditation courses offered by them. Reliance is also placed on the decision in Manav Sansadhan Vikas Ani Sanshodhan Manch Kabir Baug Matha Sanstha - 2014-TIOL-1192-CESTAT-MUMwhere it is held that yoga will fall under the category of the services "health and fitness services".
The appellants, in their rejoinder, informed that the website referred to is not their official website and no reliance can be placed on such website information; that physical well-being due to meditation is an incidental benefit that arises hence the primary objective of the meditation being spiritual in nature cannot be overlooked.
The Bench extracted the definition of ‘Health and fitness service' and observed -
"8. It is undisputed that appellants are holding meditation courses for individuals on receipt of an amount as a consideration. The definition of "health and fitness services" clearly includes the word "meditation" in the ambit of charging service tax. It was argued on behalf of appellants that the courses conducted by the appellant in medication does not help an individual for physical well-being and physical well-being is the prime requirement for falling under the category of the services of health and fitness Centre. The arguments put forth by the appellants are unacceptable to us for more than one reason. Firstly, the argument as to meditation does not induce any physical well-being is erroneous, inasmuch as that by undergoing meditation course, an individual will definitely be physically well as he is at peace with his inner soul, the fact that cannot be disputed by any one. If that be so, the argument of the appellant's that spiritual meditation as conducted by the appellant does not help physical well-being is to be discarded. Secondly, the meditation courses offered by the appellant may be for spiritual balance, in life, but fundamentally contributes towards the physical well-being and the physical benefits of an individual. In our considered view, there cannot be a dispute that meditation helps an individual attaining mental peace. In our view, physical well-being of an individual would also encompass the mental peace of that individual, would mean that the claim of the appellant that physical well-being is incidental would not carry the case any further."
On the question of limitation, the Bench reproduced verbatim the letters F.No. 237/1/2003-CX.4 dated 27.02.2003 of Ministry communicating that no ST is payable on Meditation & yoga, letter F.No. IV/16-37/CCOP/SI/2001/PI dated 25.04.2003 of CC Office, Pune Zone, intimating the stand taken by the Board; letter F.No. VGN (30)STC/PIII/SIVII-177/Osho/2008 dated 18.03.2009 of Supdt. ST, Pune-III Commissionerate enclosing letter F.No. 345/I/2009-TRU dated 18/02/2009 and informing that yoga and meditation are specifically included in the definition of taxable service namely, "Health and fitness service" and the appellant is liable to pay service on the said services provided, and observed -
"12. It can be seen from the above reproduced correspondences that the appellant was first informed as to there being no tax liability on the meditation courses conducted by them, subsequently there was a change in view of the Board and it was opined that service tax liability arises on the meditation courses. In our considered view, revenue authorities cannot demand service tax liability from the appellants for the period prior to 18 March 2009. The arguments put forth by the learned departmental representative that revenue can invoke a period of one year from the date of show cause notice is also incorrect argument in the facts of this case. A change in view by the highest body of the indirect taxes can be applied only from the date when the change of view took place."
The Bench also derived support from the decision taken in the case of Deposit Insurance & Credit Guarantee Corporation Vs. CCE & ST, Mumbai - 2015-TIOL-629-CESTAT-MUM and concluded -
| "…It is also a settled law that when there is a change of the view of the revenue, it can be made applicable only from the date when the change of view took place and informed to the assessee. In view of the foregoing, we find that the appellants have made out a case for setting aside the demand of the service tax liability, interest thereof, and the penalties for the period 01/04/2008 to 17/3/2009 ." |
In fine, the order of the CCE, Pune-III was set aside and the appeals were allowed.
In passing:
The sannyas movement is not mine. It is not yours. It was here when I was not here. It will be here when I will not be here. The sannyas movement simply means the movement of the seekers of truth. They have always been here - Osho
(See 2015-TIOL-1081-CESTAT-MUM)
