My other friends are referring to the principle of mutuality in terms of which there cannot be any service between the society and its members inter-se. In my view, the explanation in the definition of 'service' post negative list regime has not enabled the Government to overcome this principle. In fact in the context of Sales Tax law, similar issues had cropped up and the Constitution itself was amended in the year 1982 to overcome the mutuality principle. Consequently, the respective State laws were amended to enable taxing such transactions.
There is no outcome of Jthe matter pending in the SC on mutuality principle.