Page 77 - GSTL_16 April 2020_Vol 35_Part 3

2020 ] HYDERABAD RACE CLUB v. COMMISSIONER OF CUS. & C. EX., HYDERABAD 291
The appellants, M/s. Hyderabad Race Club are involved in providing
the taxable services falling under Club or Association Membership Ser-
vices w.e.f. 5-1-2006 and for providing renting of immovable property
services w.e.f. 5-5-2009, since when they are registered for the same, un-
der Service Tax. They are the company registered under Section 25 of
Companies Act, 1956, in the State of Andhra Pradesh, with main object
of carrying on the business of a Race Club in all its branches.
4. Department during the verification of books of account of the appel-
lant, noticed that they have received amounts for various taxable services ren-
dered by them. However, no Service Tax liability has been discharged. The de-
tails of various services rendered by them were observed as follows :-
(i) M/s. HRC have rented out space/immovable property to ING
Vyasya Bank and to the caterers appointed by the club;
(ii) have also collected entrance fee from the members of the club;
(iii) have provided infrastructural support facilities to the Book makers
operating in the club premises;
(iv) have provided live telecast of races of other centres/Race clubs;
(v) have conducted inter-venue betting of the other racing clubs on
which the club was receiving a share of income; and
(vi) have permitted the Book makers to accept bets from the customers
on which the club was receiving a share of income.
5. On being pointed out, service tax liability qua the services at Sl. Nos.
(i) & (ii), as above, was discharged by the appellant though under protest, but the
liability qua the remaining services has not been discharged. Resultantly, the re-
spective show cause notices as mentioned above for the above-mentioned respec-
tive periods were issued to the appellants proposing the respective demands
along with the interest at the appropriate rate and the proportionate penalties.
The said demands were confirmed by the adjudicating authority below along
with the interest at appropriate rate and the proportionate penalties. Being ag-
grieved the appellant is before this Tribunal.
6. We have heard Shri Y. Srinivas Reddy, Ld. Advocate for the appel-
lant and Mr. C. Mallikarjun Reddy, Ld. DR for the Department.
7. It is submitted on behalf of the appellants that the show cause notice
has not appropriately considered the nature of activity, the prospective of the
same, documents on record, the scope of activities undertaken and the nature of
activity involved but is based on assumptions, presumptions and surmises,
which all has been confirmed by the adjudicating authority below. The same is
impressed upon, as the important ground for setting aside the impugned order.
It is submitted that M/s. Hyderabad Race Club is an Institution registered under
Section 25 of the Companies Act, 1956 in the State of Andhra Pradesh with the
main object of carrying on the business of Race Club in all its branches. It con-
ducts the Horse Races and is also governed by the provisions of Andhra Pradesh
(Telangana Area) Horse Racing and Betting Tax Regulations 1358 F. It is submit-
ted that appellant does not involve in betting but facilitates the better at the “to-
talizator” which is a machine connected to a server. Betting can be done by the
punters either at the said totalizator or with the “bookmakers”. Bookmak-
ers/Bookies are the persons, who are given license by the club to operate as
book/bet at the races. They collect bids and pay prize money to the punters, who

GST LAW TIMES  16th April 2020  197