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SC upholds CESTAT order for service tax on Patanjali Trust

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New Delhi, April 19: In a setback to the Patanjali Yogpeeth Trust, the Supreme Court on Friday upheld an appellate tribunal’s ruling that the organisation is liable to pay service tax for charging an entry fee for organising Yoga camps, both residential and non-residential.
A bench of Justices Abhay S Oka and Ujjal Bhuyan refused to interfere with the October 5, 2023 decision of the Allahabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).The bench, while dismissing the Trust’s appeal said, “The tribunal has rightly held that Yoga in camps for a fee is a service. We do not find any reason to interfere with the impugned order. The appeal is dismissed.” In its order, the CESTAT had held that Yoga camps organised by Patanjali Yogpeeth Trust, which charges fees for participation, come under the category of “health and fitness service” and attract service tax.
It had noted that the Trust, working under Yoga guru Ramdev and his aide Acharya Balkrishna, was engaged in providing Yoga training at various residential and non-residential camps. The tribunal had said a fee was collected from the participants by way of donation.
“Though this amount was collected as a donation, it was fees for providing the said services and hence covered under the definition of consideration,” it had noted. (PTI)

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