Interim retention of Service Tax on IPL ticket sales preserved pending final decision in constitutional challenge.

The Delhi High Court dealt with an interim request concerning Service Tax on IPL ticket sales in a writ petition challenging the levy, including liability for free tickets. Because Service Tax had already been collected on tickets sold for the current season, the Court held that the amount should not remain with the petitioner pending adjudication. To protect both sides during the writ proceedings, the collected tax was directed to be retained and treated as subject to the final outcome of the petition. The interim arrangement was accordingly continued.

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Issues: Whether, at the interim stage, the Service Tax collected on sale of IPL tickets should be directed to be retained and deposited subject to the final decision in the writ petition.

Analysis: The petition raised a constitutional challenge to the levy of Service Tax on ticket sales and also questioned liability in respect of free tickets. At the stage of ad-interim consideration, the Court noted that Service Tax had already been collected on tickets sold for the current IPL season. In that situation, the collected tax could not be left with the petitioner pending adjudication, and the appropriate course was to protect both sides by making the collected amount subject to the result of the writ petition.

Conclusion: The interim arrangement was directed to continue, and the Service Tax collected during pendency was made subject to the final outcome of the petition.

Ratio Decidendi: Where tax has already been collected pending adjudication of a constitutional challenge, the collected amount may be preserved and made subject to the final result of the proceeding.

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