Yoga guru Swami Ramdev has received another blow from the Supreme Court as his yoga camps now fall within the ambit of service tax. Patanjali Yogpeeth Trust, the organizing body of Swami Ramdev's yoga camps, is now liable to pay service tax. A bench comprising Justice Abhay M. Ok and Justice Ujjwal Bhuyan has upheld the decision of the Service Tax Appellate Tribunal in this matter. The Appellate Tribunal had previously mandated the payment of service tax for both residential and non-residential yoga camps conducted by the Trust.
The Trust collects an entry fee for participation in Swami Ramdev's yoga camps. The bench stated, 'The Tribunal was correct in declaring that once an entry fee is charged, yoga becomes a service provided by the camps. We see no reason to interfere with the order of the Tribunal, hence the appeal by Patanjali Yogpeeth Trust is dismissed.' With this ruling, the court refused to intervene in the decision made by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) of Allahabad on October 5, 2023.
Yoga Camps Fall Under 'Health and Fitness Service' Category
CESTAT had acknowledged that Patanjali Yogpeeth Trust charges a fee for participation in the yoga camps from individuals. Therefore, the yoga camps organized by the Trust should fall under the service tax category. The Tribunal clarified that the Trust is engaged in providing yoga training at various residential and non-residential camps, for which fees are collected as donations, but in reality, this constitutes an entrance fee for the services provided.
Patanjali Ordered to Pay Rs. 4.5 Crore in Service Tax
The Commissioner of Customs and Central Excise, Meerut Range, had directed Patanjali Yogpeeth Trust to pay approximately Rs. 4.5 crore for the service tax levied on the yoga camps conducted between October 2006 and March 2011, including fines and interest. The Trust had argued that the services it offered were for the treatment of diseases and should not be taxable under 'Health and Fitness Service' category. However, the Tribunal stated that Patanjali Yogpeeth Trust's claim is not supported by any positive evidence showing that it provides treatment for specific medical conditions of individuals.
Discover the Full Story:
CESTAT stated, 'In these camps, yoga and meditation teachings are not given to a single person but to the entire group at once. There are no prescriptions made for the written diagnosis and treatment of any specific ailment/complaint. The Trust collected the entry fee as donations and issued admission tickets in various price ranges. Different privileges were accorded to the ticket holder based on the ticket price. The yoga camps organized by Patanjali Yogpeeth Trust - which charge a fee - fall under the category of health and fitness service and are, thus, liable to service tax.'
