WebDesk National
21 April
Sandeep Dhand Ludhiana
In a significant blow to Baba Ramdev’s Patanjali Yoga Trust, the Supreme Court has upheld a ruling requiring the trust to pay service tax on entry fees charged for yoga camps. The decision, which affirms a judgment by the Appellate Tribunal, dismisses the appeal filed by the trust against the October 5, 2023 ruling of the Allahabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).
The bench, comprising Justice Abhay S. Oka and Justice Ujjwal Bhuyan, concurred with CESTAT’s determination that fees charged for attending residential and non-residential yoga camps organized by the trust fall under the category of ‘health and wellness service’ and are therefore subject to taxation. The tribunal had reasoned that although the fees were collected as donations from participants, they constituted a fee for the services rendered, thus meeting the definition of taxable income.
Operating under the leadership of yoga guru Baba Ramdev and his associate Acharya Balakrishna, the trust had argued that its services aimed at treating diseases should be exempt from taxation under ‘Health and Wellness Services’. However, the Commissioner of Customs and Central Excise, Meerut Range, demanded a service tax of approximately Rs 4.5 crore, including penalties and interest, for the period spanning October 2006 to March 2011.
With the Supreme Court’s decision, Patanjali Yoga Trust now faces the obligation of paying the accrued service tax, amounting to Rs 4.5 crore. This development marks a significant legal setback for the trust, which has been actively involved in imparting yoga training through various camps.