Ramdev must pay service tax on yoga camps as court denies relief.

The 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) in regards to a fee collected from participants by way of donation. The bench dismissed the Trust’s appeal, stating that Yoga camps organized by Patanjali Yogpeeth Trust, which charges fees for participation, fall under the category of “health and fitness service” and attract service tax. The tribunal noted that the Trust, under Yoga guru Ramdev and his aide Acharya Balkrishna, provided Yoga training at various residential and non-residential camps. It also mentioned that a fee was collected from the participants by way of donation, and that although it was collected as a donation, it was considered as fees for providing the services and thus covered under the definition of consideration.

The Commissioner of Customs and Central Excise, Meerut range raised a service tax demand of approximately Rs 4.5 crore for October 2006 to March 2011, with penalty and interest. The Trust had contended that it was providing services for curing ailments, and argued that they were not taxable under “health and fitness service”. However, the appellate tribunal found that the Trust was engaged in providing services classifiable under the taxable category of services provided by health club and fitness center. The tribunal highlighted that the Trust had collected the entry fee disguised as a donation and provided entry tickets of various denominations.

Ultimately, the appellate tribunal upheld the decision of CESTAT and dismissed the appeal.