New Delhi, In a blow to Patanjali Yogpeeth Trust, the Supreme Court on Friday upheld an appellate tribunal's decision that the organization is liable to pay service tax on entry fees charged for organizing residential and non-residential yoga camps. .
A bench of Justices Abhay S Oka and Ujjal Bhuyan declined to interfere with the October 5, 2023 judgment of the Allahabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).
Dismissing the trust's appeal, the bench said, "The Tribunal has rightly held that yoga in camps for fee is a service. We find no reason to interfere with the impugned order. The appeal is dismissed.,
In its order, CESTAT had held that yoga camps organized by Patanjal Yogpeeth Trust, which charges fees for participation, fall under the category of "health and fitness services" and attract service tax.
It said the trust, working under yoga guru Ramdev and his associate Acharya Balkrishna, was engaged in providing yoga training in various residential and non-residential camps.
The tribunal had said that the fee was collected from the participants through donations.
“Though the amount was collected as donation, it was fee for providing the said services and hence falls within the definition of consideration,” it said in the order issued by the Commissioner of Customs and Central Excise, Meerut. Demand for service tax has been increased. Approximately Rs 4.5 crore including penalty and interest for October 2006 to March 2011.In its reply, the trust had argued that it was providing services that treat diseases. It states that they are not taxable under "Health and Fitness Services".
The appellate tribunal said in its order, "In our view the appellant (Patanjal Trust) was engaged in providing services which were classified under the taxable category of services provided by health clubs and fitness centers under section Any person as defined under section 65(52) of the Finance Act.
“The claim of the Appellant that they are providing treatment for specific ailments suffered by the individual is not supported by any positive evidence.In these camps, instructions on 'Yoga' and 'Meditation' are not given to any one person but to the entire gathering together. No prescription is designed to prescribe, diagnose and treat the specific disease/complaint of any individual."
The appellate tribunal said the trust collected the entry fee by passing it off as charity.
"They issued entry tickets of different denominations. The ticket holder was given different privileges depending on the value of the ticket.I grant the Appellant access to the camp where Swami Baba Ramdev used to give instructions regarding yoga and meditation. , " it said
A bench of Justices Abhay S Oka and Ujjal Bhuyan declined to interfere with the October 5, 2023 judgment of the Allahabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).
Dismissing the trust's appeal, the bench said, "The Tribunal has rightly held that yoga in camps for fee is a service. We find no reason to interfere with the impugned order. The appeal is dismissed.,
In its order, CESTAT had held that yoga camps organized by Patanjal Yogpeeth Trust, which charges fees for participation, fall under the category of "health and fitness services" and attract service tax.
It said the trust, working under yoga guru Ramdev and his associate Acharya Balkrishna, was engaged in providing yoga training in various residential and non-residential camps.
The tribunal had said that the fee was collected from the participants through donations.
“Though the amount was collected as donation, it was fee for providing the said services and hence falls within the definition of consideration,” it said in the order issued by the Commissioner of Customs and Central Excise, Meerut. Demand for service tax has been increased. Approximately Rs 4.5 crore including penalty and interest for October 2006 to March 2011.In its reply, the trust had argued that it was providing services that treat diseases. It states that they are not taxable under "Health and Fitness Services".
The appellate tribunal said in its order, "In our view the appellant (Patanjal Trust) was engaged in providing services which were classified under the taxable category of services provided by health clubs and fitness centers under section Any person as defined under section 65(52) of the Finance Act.
“The claim of the Appellant that they are providing treatment for specific ailments suffered by the individual is not supported by any positive evidence.In these camps, instructions on 'Yoga' and 'Meditation' are not given to any one person but to the entire gathering together. No prescription is designed to prescribe, diagnose and treat the specific disease/complaint of any individual."
The appellate tribunal said the trust collected the entry fee by passing it off as charity.
"They issued entry tickets of different denominations. The ticket holder was given different privileges depending on the value of the ticket.I grant the Appellant access to the camp where Swami Baba Ramdev used to give instructions regarding yoga and meditation. , " it said
