Patanjali Service Tax: The Supreme Court delivered a significant blow to Baba Ramdev once again on Friday. Essentially, the court upheld the decision of the appellate tribunal, directing the Patanjali Yogpeeth Trust to pay service tax on entry fees collected for yoga camps.
Dismissal of Patanjali Trust’s Appeal
A bench comprising Justice Abhay S. Oka and Justice Ujjwal Bhuyan supported the October 5, 2023, decision, which rejected the intervention in the Allahabad bench’s ruling concerning customs duty, excise duty, and service tax. The Supreme Court dismissed Patanjali Trust’s appeal, stating that “the tribunal has correctly held that the collection of fees for yoga camps is liable for service tax, so there is no ground for interference in this order.”
Taxation on Residential and Non-Residential Yoga Camps
CESTAT (Customs, Excise, and Service Tax Appellate Tribunal) explained in its order that Patanjali Yogpeeth Trust charges fees for both residential and non-residential yoga camps, which fall under the category of health and fitness services liable for service tax. Consequently, the trust now has to pay a pending service tax of Rs. 4.5 crore.
Fees Integral to the Service
Notably, Patanjali Trust, led by yoga guru Ramdev and his associate Acharya Balkrishna, has been conducting yoga training in various yoga camps. However, the judiciary clarified that the fees collected for yoga camps were indeed part of the service provided during those camps. Therefore, it should be considered under the definition of fees for services and taxed accordingly.