##PAGE1##

1

CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL NEW DELHI

PRINCIPAL BENCH - COURT NO. II

SERVICE TAX APPEAL NO. 51730 OF 2022

[Arising out of Order-in-Original No.22-23/2021-ST Dated 17.11.2021 passed by the Additional Director General(Adjudication), Delhi]

M/s NAVAL GROUP INSURANCE FUND ….APPELLANT Room No.124, Wing-A, Sena Bhawan, Integrated Headquarters,(NAVY),

Ministry of Defence, Kamraj Road, New Delhi-110 001

VERSUS

ADDITIONAL DIRECTOR GENERAL …RESPONDENT Director General of GST Intelligence (Adjudication Cell), West Block-VIII, Wing-6,

2^nd Floor, R.K. Puram, New Delhi

APPEARANCE:

Shri A.K Batra, Advocate for the appellant Shri Rohit Issar, Authorised Representative for the respondent

CORAM:

HON’BLE MR. ASHOK JINDAL, MEMBER (JUDICIAL)

FINAL ORDER NO.50618/2026 Date of Hearing/Decision: 24.03.2026

ASHOK JINDAL:

1. Both the appeals are involve a common issue are being disposed of

by a common order.

2. The facts of the case are that the appellant is a registered society under the Societies Registration Act, 1860, with Navy Coast, and its members. The appellant provides various services to its members but did not charge any Service Tax on such services. The Revenue was of the view

2

that the appellant has provided taxable services to its members, therefore, the appellant is liable to pay Service Tax. In view of this to show cause notices were issued to the appellant for recovery of Service Tax on the services provided, namely life insurance servicers and processing fees collected for house building/motor car loan schemes. The Adjudicating Authority dropped the demand in respect of life insurance services but confirmed the demand on processing fees charged by the appellant for motor vehicle/house loan facilities to its members. Aggrieved by the said

order, the appellant is before me.

3. Heard both the parties.

4. Considering the fact that the appellant is a registered society under the Societies Registration Act, 1860 and is providing services to its members, therefore any service provided by the appellant to its members is not liable to Service Tax, as held by the Rajasthan Co-operative Diary Federation Ltd. Vs. Commissioner of Central Tax, Jaipur, 2022(65) GSTL.350(Tri. Del.) instead of 2019(29)GSTL.545(SC), Supreme Court. Admittedly in this case the members of the society and its members are not distinct persons, therefore, any service provided by the society to its members is not liable

to Service Tax.

5. In the present case, the services have been provided by the appellant to its own members, the same are not taxable. Therefore, the demand of Service Tax dropped, hence, no penalty is imposable on the

Appellant.

3

6. In view of this, impugned order are set aside and the appeal is

allowed with consequential relief, if any.

[Order dictated and pronounced in open court]

(ASHOK JINDAL)

MEMBER (JUDICIAL)

RR